Magnolia Capital Advisors LLC Takes Position in Caterpillar Inc. $CAT

Key Points

• Magnolia Capital Advisors initiated a Caterpillar position by purchasing 1,429 shares valued at approximately $1.52 million. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar exceeded quarterly expectations, reporting $8.17 in EPS and $20.54 billion in revenue, while revenue rose 23.7% year over year. The company also increased its quarterly dividend to $1.63 per share, producing an annualized yield of 0.8%.
• CEO Joseph Creed sold 32,401 shares for about $26.2 million, reducing his direct stake by 48.39%. Despite the insider sale and valuation concerns, analysts maintain a “Moderate Buy” consensus with an average price target of $995.52.

Magnolia Capital Advisors LLC purchased a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 1,429 shares of the industrial products company's stock, valued at approximately $1,522,000.

Other institutional investors and hedge funds also recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Caterpillar in the second quarter valued at $40,457,153,000. State Street Corp lifted its position in shares of Caterpillar by 1.1% during the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after purchasing an additional 385,204 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Caterpillar by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock valued at $6,072,572,000 after purchasing an additional 94,524 shares during the last quarter. Fisher Asset Management LLC increased its holdings in shares of Caterpillar by 0.6% in the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after purchasing an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE raised its position in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after purchasing an additional 928,974 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the sale, the chief executive officer directly owned 34,555 shares of the company's stock, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.33% of the stock is currently owned by corporate insiders.

Caterpillar Stock Down 0.1%

Shares of NYSE:CAT opened at $813.51 on Monday. The company has a 50 day moving average price of $872.52 and a two-hundred day moving average price of $838.91. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The company has a market capitalization of $373.95 billion, a PE ratio of 35.00, a PEG ratio of 1.41 and a beta of 1.60. Caterpillar Inc. has a 52 week low of $416.44 and a 52 week high of $1,073.46.

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 (EPS) for the quarter, beating the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm's revenue was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.72 EPS. Analysts forecast that Caterpillar Inc. will post 27.34 earnings per share for the current year.

Caterpillar Increases Dividend

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

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: FieldAI partnership supports the automation outlook. Caterpillar is combining its construction-equipment expertise with FieldAI’s physical-AI technology to develop autonomous capabilities for machines and improve safety, productivity and visibility at jobsites. The initiative could create longer-term revenue opportunities in equipment, software and services. Caterpillar partners with FieldAI for equipment automation
• Positive Sentiment: Analyst and quantitative sentiment has improved. Zacks upgraded CAT to Rank #1, or “Strong Buy,” citing rising optimism about earnings prospects. Erste Group Bank also raised its fiscal 2026 EPS forecast, adding to the constructive outlook. Caterpillar upgraded to Strong Buy
• Positive Sentiment: AI infrastructure is boosting Power & Energy demand. Caterpillar’s retail sales to power-generation users reportedly surged 72% year over year in the second quarter, as data centers and generative-AI infrastructure increase demand for reliable power. This gives CAT an additional growth driver beyond traditional construction and mining markets. Can CAT Stock Compound Its Way Higher?
• Neutral Sentiment: Recent earnings performance remains a strength, but expectations are elevated. Caterpillar’s latest quarterly results exceeded consensus estimates for both earnings and revenue, with revenue up 23.7% year over year. A sector review described CAT as the strongest heavy-machinery performer, though investors are increasingly pricing in continued execution.
• Negative Sentiment: Valuation and performance concerns could limit upside. Commentary notes that CAT has outperformed peers in the stock market more than in underlying business performance, leaving the shares dependent on future growth. The stock has also declined since its latest earnings report, while a report tied the recent weakness to insider selling. CAT Has Left Its Peers Behind. Or Has It?

Analyst Upgrades and Downgrades

CAT has been the topic of a number of recent research reports. Oppenheimer reiterated an "outperform" rating and issued a $1,118.00 price objective on shares of Caterpillar in a research report on Tuesday, August 4th. Zacks Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 12th. Sanford C. Bernstein reissued a "market perform" rating and set a $1,002.00 price objective on shares of Caterpillar in a report on Wednesday, August 5th. Truist Financial set a $980.00 target price on shares of Caterpillar in a research report on Wednesday, August 5th. Finally, Rothschild & Co Redburn raised their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. One equities 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 company's stock. Based on data from MarketBeat.com, Caterpillar presently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

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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