Lee Johnson Capital Management LLC Takes Position in Caterpillar Inc. $CAT

Key Points

• Lee Johnson Capital Management acquired 6,955 Caterpillar shares worth approximately $7.4 million, making CAT its eighth-largest holding and representing about 2.3% of its portfolio. Institutional investors collectively own 70.98% of the company.
• Caterpillar reported strong quarterly results, with EPS of $8.17 beating estimates of $6.22 and revenue rising 23.7% year over year to $20.54 billion. Construction Industries revenue grew 35%, supported by stronger demand, higher volumes and pricing.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $995.52, but concerns include CAT’s elevated valuation above 34 times earnings, limited 0.8% dividend yield and uncertainty over whether recent construction demand is sustainable.

Lee Johnson Capital Management LLC acquired a new position in 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 6,955 shares of the industrial products company's stock, valued at approximately $7,406,000. Caterpillar makes up about 2.3% of Lee Johnson Capital Management LLC's investment portfolio, making the stock its 8th biggest holding.

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

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Argus lifted their price target on Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Wells Fargo & Company lifted their target price on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. DA Davidson boosted their target price on shares of Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Erste Group Bank cut shares of Caterpillar from a "buy" rating to a "hold" rating in a report on Monday, July 27th. Finally, Barclays boosted their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s Construction Industries segment generated 35% revenue growth in the second quarter, supported by stronger demand, higher sales volumes and pricing. Digital technology and connected-equipment services could provide additional long-term growth opportunities. CAT's Construction Revenues Up 35% in Q2: Can It Maintain This Pace?
• Positive Sentiment: Analysts point to favorable earnings-estimate revisions and recent price strength as potential catalysts. Caterpillar’s latest quarterly results also showed substantial year-over-year revenue and earnings growth, with results exceeding consensus expectations. Why Caterpillar (CAT) Might be Well Poised for a Surge
• Positive Sentiment: The company raised its quarterly dividend 8% to $1.63 per share and has now increased its annual dividend for 32 consecutive years, reinforcing Caterpillar’s appeal as an income-growth stock. However, the benefit is partly offset by the stock’s high price and consequently low yield. Caterpillar’s Dividend Case Is Stronger in 2026, But the Yield Is Holding It Back
• Neutral Sentiment: CEO Joe Creed is scheduled to participate in a Wells Fargo investor discussion on September 10. The event could provide updates on demand, dealer inventories and guidance, but it is not an immediate earnings catalyst. Caterpillar CEO Joe Creed to Participate in Virtual Headquarters Visit with Wells Fargo
• Negative Sentiment: One analysis questions whether construction demand is being driven by durable end-market activity or dealer-channel ordering. That uncertainty raises concerns about a possible slowdown or inventory adjustment after the recent surge. Is Caterpillar Stock Relying on an Artificial Demand Story?
• Negative Sentiment: At a valuation above 34 times earnings, Caterpillar leaves less room for disappointment. Investors are also cautious that its data-center-related exposure could face political scrutiny, while the dividend yield remains limited at the current valuation.

Caterpillar Price Performance

Shares of NYSE CAT opened at $800.11 on Monday. Caterpillar Inc. has a 52 week low of $410.52 and a 52 week high of $1,073.46. The business's 50 day moving average price is $893.92 and its 200 day moving average price is $837.81. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm has a market cap of $367.79 billion, a P/E ratio of 34.43, a P/E/G ratio of 1.40 and a beta of 1.60.

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

Caterpillar Increases Dividend

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

About Caterpillar

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.

Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source