Roman Butler Fullerton & Co. Purchases Shares of 5,948 Caterpillar Inc. $CAT

Key Points

• Roman Butler Fullerton & Co. acquired 5,948 Caterpillar shares worth approximately $5.54 million, making CAT about 1.3% of its portfolio. Institutional investors collectively own nearly 71% of Caterpillar.
• Caterpillar reported strong quarterly results, with revenue rising 23.7% year over year to $20.54 billion and EPS of $8.17, well above analyst expectations. Its Construction Industries segment posted 35% revenue growth.
• The company raised its quarterly dividend 8% to $1.63 per share, but shares trade at a demanding valuation of roughly 34 times earnings and yield only 0.8%, leaving investors sensitive to any slowdown in demand or inventory adjustments.

Roman Butler Fullerton & Co. acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 5,948 shares of the industrial products company's stock, valued at approximately $5,541,000. Caterpillar makes up about 1.3% of Roman Butler Fullerton & Co.'s holdings, making the stock its 17th largest holding.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Axxcess Wealth Management LLC grew its holdings in shares of Caterpillar by 2.8% in the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock valued at $12,844,000 after acquiring an additional 604 shares in the last quarter. DSG Capital Advisors LLC bought a new position in Caterpillar in the 1st quarter valued at $1,226,000. Cornerstone Planning LLC purchased a new stake in shares of Caterpillar during the 4th quarter valued at $4,517,000. RiverFront Investment Group LLC raised its stake in shares of Caterpillar by 21.1% during the 4th quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company's stock worth $5,107,000 after purchasing an additional 1,552 shares during the period. Finally, Larson Financial Group LLC boosted its holdings in shares of Caterpillar by 73.6% in the 4th 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 last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Key Caterpillar News

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 Stock Down 2.1%

Shares of NYSE CAT opened at $800.11 on Friday. Caterpillar Inc. has a 52 week low of $410.52 and a 52 week high of $1,073.46. The company 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. 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 business has a 50-day simple moving average of $893.92 and a two-hundred day simple moving average of $837.14.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts' consensus estimates 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%. Caterpillar's revenue was up 23.7% compared to the same quarter last year. During the same period last year, the business earned $4.72 earnings per share. Research analysts anticipate that Caterpillar Inc. will post 27.14 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company 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. The ex-dividend date was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. Caterpillar's dividend payout ratio (DPR) is presently 28.06%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on CAT shares. Citigroup raised their price objective on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. UBS Group increased their target price on shares of Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Wall Street Zen upgraded shares of Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Evercore reiterated an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Finally, DA Davidson increased their price objective on Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Company Profile

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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