Pacer Advisors Inc. Cuts Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Pacer Advisors reduced its Caterpillar stake by 32.6% in the first quarter, selling 13,832 shares and retaining 28,626 shares worth approximately $20.28 million. Institutional investors collectively own 70.98% of CAT.
• Analyst sentiment remains moderately bullish: Caterpillar has 13 Buy ratings and 12 Holds, with a consensus price target of $966.29. Jefferies and Citigroup recently raised their targets to $1,045 and $1,100, respectively.
• Caterpillar increased its quarterly dividend to $1.63 per share, or $6.52 annually, while upcoming earnings are the key catalyst amid expectations for stronger revenue and earnings but continued scrutiny over tariffs, margins, valuation and recent AI-related selling pressure.

Pacer Advisors Inc. lessened its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 32.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 28,626 shares of the industrial products company's stock after selling 13,832 shares during the quarter. Pacer Advisors Inc.'s holdings in Caterpillar were worth $20,280,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also modified their holdings of the business. Lam Group Inc. purchased a new position in Caterpillar in the first quarter worth $26,000. Torren Management LLC purchased a new stake in shares of Caterpillar during the 4th quarter worth $27,000. Frazier Financial Advisors LLC grew its stake in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after purchasing an additional 33 shares during the period. Cornerstone Financial Management LLC purchased a new position in shares of Caterpillar in the 4th quarter valued at about $32,000. Finally, Monetary Solutions Ltd acquired a new stake in shares of Caterpillar in the fourth quarter valued at about $35,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

CAT has been the subject of a number of research analyst reports. Jefferies Financial Group increased their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a report on Friday, May 1st. Zacks Research lowered Caterpillar from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. DA Davidson upped their price target on Caterpillar from $650.00 to $845.00 and gave the stock a "neutral" rating in a report on Monday, May 4th. UBS Group reaffirmed a "neutral" rating and set a $900.00 price objective on shares of Caterpillar in a report on Tuesday, June 2nd. Finally, Citigroup boosted their target price on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat.com, Caterpillar presently has a consensus rating of "Moderate Buy" and an average target price of $966.29.

Caterpillar Trading Up 2.3%

Caterpillar stock opened at $833.47 on Tuesday. The stock has a 50-day moving average price of $923.52 and a 200 day moving average price of $814.19. Caterpillar Inc. has a 52 week low of $405.46 and a 52 week high of $1,073.46. The stock has a market cap of $383.89 billion, a PE ratio of 41.49, a P/E/G ratio of 1.59 and a beta of 1.60. 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 Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar's payout ratio is presently 32.45%.

Insider Buying and Selling at Caterpillar

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the transaction, the chief financial officer owned 52,935 shares of the company's stock, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the transaction, the insider directly owned 49,825 shares in the company, valued at $45,236,615.75. The trade was a 20.19% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 84,492 shares of company stock valued at $77,567,548. Corporate insiders own 0.33% of the company's stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts expect strong year-over-year growth, with consensus estimates calling for approximately $6.22 in adjusted earnings per share, up from $4.72 a year earlier, and about $19.2 billion in revenue. A beat or bullish outlook could support the stock. Caterpillar Earnings Are Coming. Only 1 Thing Matters.
• Positive Sentiment: Caterpillar’s order backlog reportedly reached a record $63 billion. Investors will look for evidence that AI data-center construction and related power demand are continuing to generate new orders. Caterpillar's Order Backlog Hit a Record $63 Billion
• Positive Sentiment: Compared with cash-burning growth companies, Caterpillar is being highlighted for converting revenue into substantial free cash flow, reinforcing its appeal as a financially mature industrial and AI-infrastructure beneficiary. Rocket Lab vs. Caterpillar
• Positive Sentiment: Waste Management is expanding collaboration with Caterpillar to test autonomous heavy equipment at landfills, providing another potential technology and equipment growth opportunity. WM's Landfill of the Future Advances Towards Autonomous Equipment Testing
• Neutral Sentiment: The earnings release is the primary near-term catalyst. Investors will focus on orders, margins, tariff effects and management’s outlook rather than the headline EPS figure alone. Caterpillar Q2 2026 Earnings Preview
• Negative Sentiment: The stock has recently been pressured in an AI-related selloff, leaving Caterpillar’s earnings and guidance under heightened scrutiny. Its premium valuation and potential tariff impact could amplify any disappointment. Caterpillar Faces Earnings Test After AI Selloff Hits Stock

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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