Foster & Motley Inc. Takes $13.43 Million Position in Caterpillar Inc. $CAT

Key Points

• Foster & Motley acquired a new Caterpillar stake of 12,614 shares valued at approximately $13.43 million during the second quarter. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with revenue rising 23.7% year over year to $20.54 billion and EPS of $8.17, well above the $6.22 analyst consensus. Analysts maintain a “Moderate Buy” consensus with an average price target of $995.52.
• The company increased its quarterly dividend to $1.63, or $6.52 annualized, while investors should note that CAT trades at a relatively high P/E ratio of 34.33, leaving the stock vulnerable if AI- and power-demand growth expectations disappoint.

Foster & Motley Inc. acquired a new stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 12,614 shares of the industrial products company's stock, valued at approximately $13,433,000.

Other hedge funds have also recently bought and sold shares of the company. Axxcess Wealth Management LLC lifted its position in Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock valued at $12,844,000 after buying an additional 604 shares in the last quarter. DSG Capital Advisors LLC purchased a new stake in Caterpillar during the first quarter worth approximately $1,226,000. Cornerstone Planning LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $4,517,000. RiverFront Investment Group LLC raised its stake in shares of Caterpillar by 21.1% in the 4th quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company's stock valued at $5,107,000 after acquiring an additional 1,552 shares during the period. Finally, Larson Financial Group LLC lifted its holdings in shares of Caterpillar by 73.6% during the 4th quarter. Larson Financial Group LLC now owns 12,915 shares of the industrial products company's stock valued at $7,399,000 after acquiring an additional 5,476 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: July durable-goods orders rose 1.1%, suggesting a manufacturing rebound that could support demand for Caterpillar’s construction, mining and industrial equipment. CAT was identified as one of several industrial stocks positioned to benefit. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Positive Sentiment: Erste Group Bank reportedly expects stronger earnings for Caterpillar, adding to the constructive analyst outlook surrounding the company. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Caterpillar’s power-generation business is benefiting from rising electricity demand tied to data centers and artificial intelligence. Recent coverage points to a first-ever quarterly sales total above $20 billion and identifies power generation as an increasingly important growth engine. Forget the Industry Labels: Chevron and Caterpillar Are Both Betting on the AI Power Boom
• Positive Sentiment: The company is applying its autonomous-mining expertise to industrial AI deployment, including field-support tools such as the Cat AI Assistant. Caterpillar also committed $100 million to AI and robotics workforce training, which could improve productivity and strengthen its technology positioning. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, but the coverage notes that sell-side ratings are often overly optimistic and may have limited predictive value for CAT’s performance. Is Caterpillar a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: At a high earnings multiple, Caterpillar is increasingly being valued like a technology-growth company. That raises the risk of pressure on the stock if AI-related growth, power-equipment demand or earnings forecasts fail to exceed expectations. How AI Power Demand Transformed Caterpillar into a High-Multiple Tech Play

Analyst Upgrades and Downgrades

Several brokerages have issued reports on CAT. Zacks Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 12th. Citigroup boosted their price target on Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Wells Fargo & Company upped their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Evercore reaffirmed an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a report on Monday, May 11th. Finally, Truist Financial set a $980.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Stock Down 0.3%

NYSE:CAT opened at $797.72 on Tuesday. The firm has a market capitalization of $366.69 billion, a PE ratio of 34.33, a price-to-earnings-growth ratio of 1.40 and a beta of 1.60. The stock has a 50 day moving average of $889.47 and a 200-day moving average of $838.20. Caterpillar Inc. has a 52 week low of $410.52 and a 52 week high of $1,073.46. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same period in the prior year, the firm earned $4.72 EPS. The business's quarterly revenue was up 23.7% on a year-over-year basis. Analysts predict that Caterpillar Inc. will post 27.14 EPS for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were given a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Monday, July 20th. Caterpillar's dividend payout ratio is 28.06%.

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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