State of Michigan Retirement System Has $125.63 Million Position in Caterpillar Inc. $CAT

Key Points

• Michigan’s retirement system reduced its Caterpillar stake by 9% in the second quarter, selling 11,600 shares and retaining 117,972 shares valued at approximately $125.63 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with EPS of $8.17 beating estimates by $1.95 and revenue rising 23.7% year over year to $20.54 billion. The company also raised its quarterly dividend to $1.63, or $6.52 annually.
• Analysts remain broadly optimistic, assigning CAT a consensus “Moderate Buy” rating and an average price target of $995.52, though valuation concerns and macroeconomic risks continue to temper enthusiasm.

State of Michigan Retirement System lessened its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 9.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 117,972 shares of the industrial products company's stock after selling 11,600 shares during the quarter. State of Michigan Retirement System's holdings in Caterpillar were worth $125,628,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Pacific Point Advisors LLC bought a new stake in Caterpillar in the fourth quarter valued at about $579,000. Brighton Jones LLC boosted its holdings in Caterpillar by 51.5% during the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock valued at $2,688,000 after purchasing an additional 2,519 shares in the last quarter. United Bank grew its stake in shares of Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after purchasing an additional 2,125 shares during the period. Schnieders Capital Management LLC. raised its holdings in shares of Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after buying an additional 347 shares in the last quarter. Finally, Alliancebernstein L.P. raised its holdings in shares of Caterpillar by 6.5% in the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock worth $222,120,000 after buying an additional 34,846 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar Stock Up 0.0%

Shares of NYSE CAT opened at $811.40 on Wednesday. Caterpillar Inc. has a 12-month low of $410.52 and a 12-month high of $1,073.46. The firm's 50-day simple moving average is $903.72 and its 200 day simple moving average is $835.74. 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 company has a market cap of $372.98 billion, a price-to-earnings ratio of 34.91, a price-to-earnings-growth ratio of 1.42 and a beta of 1.60.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion during the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter last year, the company posted $4.72 EPS. The company's quarterly revenue was up 23.7% compared to the same quarter last year. On average, research analysts expect that Caterpillar Inc. will post 27.14 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

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

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Wells Fargo & Company upped their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Bank of America lifted their price objective on Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a report on Friday, May 1st. Morgan Stanley set a $915.00 target price on shares of Caterpillar and gave the stock an "equal weight" rating in a report on Friday, May 1st. Weiss Ratings upgraded shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. Finally, UBS Group boosted their price target 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. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Strong backlog points to future growth. Caterpillar’s order book reportedly expanded substantially beneath the surface, suggesting future revenue visibility even while some recent sales figures appeared soft. Before The Surge, Caterpillar Stock’s Order Book Told a Different Story
• Positive Sentiment: Margins and guidance improved. Coverage highlighted a 430-basis-point rebound in second-quarter adjusted operating margin, with higher volumes and pricing offsetting tariff costs. The improvement helped support an upgraded 2026 outlook. Caterpillar's Q2 Adjusted Operating Margin Rebounds
• Positive Sentiment: CAT remains a preferred heavy-equipment name. Analysts cited record sales, earnings growth and backlog strength as reasons Caterpillar currently has an edge over Deere. Other market commentary included Caterpillar among stocks positioned to benefit from investment and infrastructure-related trends. Caterpillar vs. Deere: Which Heavy Equipment Stock Should You Bet On?
• Neutral Sentiment: Valuation opinions are mixed. Some analysis suggests CAT could be undervalued by roughly 20% based on margins and cash flow, while another estimate sees only about 4% upside linked partly to potential tariff refunds. This follows a substantial five-year share-price gain and leaves investors focused on whether earnings can justify the valuation. Caterpillar Could Be 20% Undervalued
• Negative Sentiment: Contrasting investor signals may limit enthusiasm. The Gates Foundation Trust disclosed a sizable CAT holding, while Michael Burry disclosed a short position. QuiverQuant also reported substantially more insider sales than purchases over the past six months, potentially adding caution despite strong fundamentals. Bill Gates' Foundation Holds a Caterpillar Stake as Michael Burry Bets Against the Stock
• Negative Sentiment: Macro risks remain an overhang. Recent commentary linked CAT’s pullback to interest-rate concerns and weaker sentiment toward industrial stocks, showing that broader economic factors are currently overshadowing the company’s earnings and backlog strength.

Caterpillar 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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