Rakuten Investment Management Inc. Buys New Stake in Caterpillar Inc. $CAT

Key Points

• Rakuten Investment Management bought 75,605 Caterpillar shares worth approximately $78.1 million, making CAT its 24th-largest holding and representing about 0.2% of its portfolio.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $995.52, while institutional investors and hedge funds own 70.98% of the stock.
• Caterpillar exceeded quarterly expectations with $8.17 in earnings per share and $20.54 billion in revenue, but CEO Joseph Creed sold nearly $26.2 million of shares and the stock’s elevated valuation could increase downside risk.

Rakuten Investment Management Inc. purchased a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 75,605 shares of the industrial products company's stock, valued at approximately $78,114,000. Caterpillar accounts for approximately 0.2% of Rakuten Investment Management Inc.'s investment portfolio, making the stock its 24th largest holding.

A number of other institutional investors also recently added to or reduced their stakes in CAT. Stonebridge Financial Group LLC raised its holdings in shares of Caterpillar by 0.7% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company's stock worth $1,741,000 after buying an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC boosted its stake in Caterpillar by 1.2% in the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock valued at $936,000 after buying an additional 11 shares in the last quarter. Bell Bank grew its position in Caterpillar by 0.6% in the second quarter. Bell Bank now owns 1,865 shares of the industrial products company's stock valued at $1,986,000 after acquiring an additional 11 shares during the period. Cornerstone Advisory LLC lifted its holdings in shares of Caterpillar by 0.7% during the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock valued at $1,288,000 after acquiring an additional 12 shares during the period. Finally, Advisory Resource Group boosted its stake in shares of Caterpillar by 0.8% in the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock valued at $935,000 after purchasing an additional 13 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Barclays upped their target price on shares of Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Citigroup boosted their price target on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Erste Group Bank lowered shares of Caterpillar from a "buy" rating to a "hold" rating in a report on Monday, July 27th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $1,002.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. Finally, Oppenheimer reissued an "outperform" rating and issued a $1,118.00 target price on shares of Caterpillar in a report on Tuesday, August 4th. 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 company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Insiders Place Their Bets

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction 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 transaction, the chief executive officer 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 filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.33% of the stock is owned by company insiders.

Caterpillar Stock Up 0.9%

Shares of NYSE:CAT opened at $821.25 on Wednesday. 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 $377.50 billion, a P/E ratio of 35.34, a P/E/G ratio of 1.41 and a beta of 1.60. Caterpillar Inc. has a 12 month low of $416.44 and a 12 month high of $1,073.46. The company's 50-day moving average price is $863.27 and its two-hundred day moving average price is $839.74.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share 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 the consensus estimate of $19.34 billion. During the same period in the previous year, the firm posted $4.72 earnings per share. The company's revenue was up 23.7% on a year-over-year basis. As a group, research analysts forecast that Caterpillar Inc. will post 27.34 EPS for the current fiscal year.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s power-generation backlog reportedly reached $72 billion, reinforcing the view that demand from data centers and AI-related infrastructure could make the company less dependent on the traditional construction cycle. Caterpillar's Power Generation Backlog Just Hit $72 Billion
• Positive Sentiment: Recent coverage points to Caterpillar’s record backlog, strong earnings and raised 2026 outlook as key reasons for its roughly 95% one-year gain. The company’s latest reported quarter also exceeded EPS and revenue expectations, supporting investor confidence in its operating momentum. Caterpillar Gains 95% in a Year: Time to Buy, Sell or Hold the Stock?
• Positive Sentiment: Chief Digital Officer Ogi Redzic described how AI is changing construction work, highlighting Caterpillar’s efforts to use digital tools and automation to improve equipment productivity and customer operations. This could strengthen the company’s longer-term technology and services opportunity. Caterpillar’s Digital Chief Ogi Redzic on How A.I. Is Redefining Construction Work
• Neutral Sentiment: Industry coverage continues to identify Caterpillar as a leading construction-equipment company, supported by its global dealer network and cash-generation capabilities. However, the equipment showcase itself does not provide a new financial catalyst. Caterpillar vs. Corning: Which Stock Is a Better Buy in 2026?
• Negative Sentiment: At approximately 34 times earnings, Caterpillar trades at a demanding valuation after its major rally. Analysts note that the premium leaves the stock vulnerable to profit-taking or disappointment if backlog conversion, margins or the 2026 outlook weaken. Caterpillar Gains 95% in a Year: Time to Buy, Sell or Hold the Stock?

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company's products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.

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.