Madison Asset Management LLC Lowers Position in Caterpillar Inc. $CAT

Key Points

• Madison Asset Management cut its Caterpillar stake by 56.5% in the fourth quarter, selling 10,851 shares and leaving it with 8,366 shares worth about $4.79 million.
• Several analysts turned more bullish on Caterpillar, with firms like Wells Fargo and Evercore raising price targets; the stock now carries a Moderate Buy consensus and an average target of $911.77.
• Caterpillar reported stronger-than-expected quarterly results, including $5.54 EPS versus $4.65 expected and revenue of $17.42 billion, while also announcing a quarterly dividend of $1.51 per share.

Madison Asset Management LLC cut its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 56.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 8,366 shares of the industrial products company's stock after selling 10,851 shares during the quarter. Madison Asset Management LLC's holdings in Caterpillar were worth $4,793,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Torren Management LLC purchased a new stake in shares of Caterpillar in the fourth quarter worth approximately $27,000. IFS Advisors LLC bought a new position in shares of Caterpillar in the fourth quarter valued at approximately $31,000. Rialto Wealth Management LLC grew its holdings in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock valued at $32,000 after acquiring an additional 18 shares in the last quarter. Noble Wealth Management PBC grew its holdings in shares of Caterpillar by 140.0% in the fourth quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock valued at $34,000 after acquiring an additional 35 shares in the last quarter. Finally, Key Capital Management INC bought a new position in shares of Caterpillar in the fourth quarter valued at approximately $36,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Wells Fargo & Company upped their target price on Caterpillar from $960.00 to $1,050.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Daiwa Securities Group upped their target price on Caterpillar from $790.00 to $900.00 and gave the company a "neutral" rating in a report on Friday, May 1st. Sanford C. Bernstein upped their target price on Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a report on Friday, May 1st. Rothschild & Co Redburn upped their target price on Caterpillar from $650.00 to $700.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Finally, Evercore reaffirmed an "outperform" rating and issued a $1,103.00 target price on shares of Caterpillar in a report on Monday. Sixteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $911.77.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Several analysts raised their outlooks on Caterpillar (CAT), including Argus, which lifted its price target to $990 and reiterated a Buy rating on expectations for strong demand and continued momentum. Argus Lifts PT on Caterpillar Inc. (CAT), Expects Strong Demand
• Positive Sentiment: Commentary from Jim Cramer and other media coverage highlighted Caterpillar as a beneficiary of oil, infrastructure, and AI data-center power demand, reinforcing the bullish “power generation” narrative. Cramer's lightning round: Buy Caterpillar
• Positive Sentiment: Caterpillar (CAT) released its 2025 Annual and Sustainability Reports, emphasizing record full-year sales and revenue in its centennial year and a strategy centered on profitable growth. Caterpillar Inc. Releases 2025 Annual and Sustainability Reports
• Positive Sentiment: Recent coverage cited Caterpillar’s strong first-quarter results, upbeat full-year guidance, and continued share buybacks, all of which support the stock’s bullish rerating. Caterpillar (CAT) Is Up 5.9% After Strong Q1, Data Center Power Deal And Buyback Update
• Neutral Sentiment: A Seeking Alpha piece noted that AI-related power demand is a real opportunity for Caterpillar (CAT), but argued the power-generation segment is still a relatively small part of sales, so investors may want to see broader mix shift before assigning even more upside. Seeking Alpha Caterpillar article
• Negative Sentiment: Insider selling by Anthony Fassino, who sold 16,283 shares, may slightly temper sentiment, though the transaction does not appear large enough to outweigh the stronger business and analyst-driven positives. Anthony Fassino sells Caterpillar shares

Insider Buying and Selling at Caterpillar

In other Caterpillar news, insider Jason Kaiser sold 5,642 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the sale, the insider owned 9,594 shares in the company, valued at $8,471,789.82. This represents a 37.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the sale, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 92,017 shares of company stock valued at $81,982,867 in the last quarter. Insiders own 0.33% of the company's stock.

Caterpillar Price Performance

Shares of NYSE CAT opened at $901.22 on Thursday. The stock has a fifty day simple moving average of $768.15 and a two-hundred day simple moving average of $675.78. Caterpillar Inc. has a 1-year low of $336.24 and a 1-year high of $931.35. The firm has a market cap of $415.09 billion, a price-to-earnings ratio of 44.86, a price-to-earnings-growth ratio of 1.83 and a beta of 1.63. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.42 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same period in the prior year, the company earned $4.25 earnings per share. Caterpillar's revenue was up 22.2% compared to the same quarter last year. Analysts anticipate that Caterpillar Inc. will post 24.21 earnings per share for the current year.

Caterpillar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th will be issued a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, April 20th. Caterpillar's dividend payout ratio is 30.06%.

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.

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