Jennison Associates LLC Reduces Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Jennison Associates trimmed its stake in Caterpillar by 48.1% in Q4, selling 113,970 shares and leaving 122,936 shares valued at about $70.43 million.
• Caterpillar beat Q1 expectations (EPS $5.54 vs. $4.65; revenue $17.42B), raised its outlook and cited a record backlog and rising AI/data-center power demand, prompting several analyst price-target increases and a MarketBeat consensus rating of "Moderate Buy" (PT $767.77).
• Insiders have sold heavily (125,950 shares, ~$88.6M over 90 days) while institutional ownership stands near 71%, even as the company returned $5.7B in Q1 via buybacks/dividends and announced a $1.51 quarterly dividend ($6.04 annual, ~0.7% yield).

Jennison Associates LLC trimmed its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 48.1% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 122,936 shares of the industrial products company's stock after selling 113,970 shares during the quarter. Jennison Associates LLC's holdings in Caterpillar were worth $70,426,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Trifecta Capital Advisors LLC grew its stake in Caterpillar by 1.7% during the 4th quarter. Trifecta Capital Advisors LLC now owns 25,446 shares of the industrial products company's stock worth $14,577,000 after buying an additional 434 shares during the last quarter. Prentice Wealth Management LLC grew its stake in Caterpillar by 13.5% during the 4th quarter. Prentice Wealth Management LLC now owns 629 shares of the industrial products company's stock valued at $360,000 after purchasing an additional 75 shares during the last quarter. Heritage Investment Group Inc. purchased a new stake in Caterpillar during the 4th quarter valued at about $204,000. Joseph Group Capital Management grew its stake in Caterpillar by 75.0% during the 4th quarter. Joseph Group Capital Management now owns 119 shares of the industrial products company's stock valued at $68,000 after purchasing an additional 51 shares during the last quarter. Finally, Wagner Wealth Management LLC grew its stake in Caterpillar by 9.1% during the 4th quarter. Wagner Wealth Management LLC now owns 1,739 shares of the industrial products company's stock valued at $996,000 after purchasing an additional 145 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

CAT has been the topic of several research analyst reports. Daiwa Securities Group boosted their price target on Caterpillar from $640.00 to $790.00 in a research note on Wednesday, February 25th. Wells Fargo & Company boosted their price target on Caterpillar from $870.00 to $960.00 and gave the company an "overweight" rating in a research note on Tuesday, April 21st. Barclays boosted their price target on Caterpillar from $625.00 to $700.00 and gave the company an "equal weight" rating in a research note on Tuesday, March 31st. JPMorgan Chase & Co. boosted their price target on Caterpillar from $765.00 to $860.00 and gave the company an "overweight" rating in a research note on Wednesday, March 4th. Finally, Morgan Stanley boosted their price target on Caterpillar from $425.00 to $430.00 and gave the company an "underweight" rating in a research note on Wednesday, April 15th. Sixteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $767.77.

Insider Transactions at Caterpillar

In other news, CEO Joseph E. Creed sold 2,500 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $718.93, for a total value of $1,797,325.00. Following the sale, the chief executive officer owned 35,083 shares in the company, valued at $25,222,221.19. This represents a 6.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Rodney Michael Shurman sold 2,278 shares of the company's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $759.61, for a total value of $1,730,391.58. Following the completion of the sale, the insider owned 1,443 shares in the company, valued at $1,096,117.23. The trade was a 61.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 125,950 shares of company stock valued at $88,577,390. 0.33% of the stock is owned by insiders.

Caterpillar Stock Up 10.0%

Shares of CAT opened at $890.91 on Friday. Caterpillar Inc. has a 52 week low of $311.02 and a 52 week high of $896.98. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. The company has a market capitalization of $414.53 billion, a price-to-earnings ratio of 47.34, a PEG ratio of 1.87 and a beta of 1.52. The stock's 50-day moving average price is $746.86 and its 200-day moving average price is $655.04.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The firm had revenue of $17.42 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same quarter in the prior year, the business earned $4.25 earnings per share. The company's revenue was up 22.2% compared to the same quarter last year. On average, sell-side analysts predict that Caterpillar Inc. will post 22.89 EPS for the current year.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be paid a $1.51 dividend. The ex-dividend date is Monday, April 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 0.7%. Caterpillar's dividend payout ratio is presently 32.09%.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q1 beat and raised outlook — CAT reported adjusted EPS and revenue well above estimates, drove a sizable year-over-year revenue gain and raised annual guidance on stronger demand for construction and power equipment. Caterpillar expects AI-driven demand for power, construction to fuel growth
• Positive Sentiment: Record backlog and AI-driven power demand — Management cited a record backlog and rising demand for power and energy equipment to support data centers (AI buildout), underpinning multi-year revenue visibility for the power segment. Caterpillar stock jumps on record backlog, boom in power and energy equipment for data centers
• Positive Sentiment: Strategic partnership for power assets — A framework agreement with PROPWR (ProPetro) to supply up to 2.1 GW of power generation capacity reinforces Caterpillar’s exposure to data-center and industrial power demand. That supports the company’s growth story beyond traditional construction equipment. ProPetro, Caterpillar Partner on Multi-Year Power Buildout Through 2032
• Positive Sentiment: Capital returns — CAT deployed $5.7 billion for share repurchases and dividends in Q1, a concrete driver of EPS accretion and shareholder value that supports the stock’s rally. Caterpillar Reports First-Quarter 2026 Results
• Positive Sentiment: Market reaction & analyst support — ETFs and broader market flows grabbed CAT exposure after the earnings-led rally; banks and some analysts have raised estimates/targets, reinforcing momentum. ETFs tied to Caterpillar jump after the stock's earnings-driven rally
• Neutral Sentiment: Broader market context — CAT’s move helped lift the Dow and contributed to intraday index strength, but part of the move reflects market positioning around big-cap earnings rather than company-specific news alone. Dow rises 730 points, S&P 500 hits new intraday high
• Neutral Sentiment: Corporate housekeeping — Caterpillar announced its virtual annual shareholder meeting (June 10), which is routine and unlikely to move the share price materially. Caterpillar Announces Virtual 2026 Shareholder Meeting
• Negative Sentiment: Tariff and cost pressure — Management warned of significant tariff costs for 2026 and analysts flagged tariffs as a margin headwind, which could limit upside to margins even as revenue grows. Caterpillar expecting significant tariff costs again for 2026

Caterpillar Company 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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