Strs Ohio Raises Stake in Caterpillar Inc. $CAT

Key Points

• STRS Ohio boosted its stake in Caterpillar by 17.2% in Q4 to 174,828 shares, valued at about $100.15 million per its SEC filing.
• Caterpillar beat Q1 estimates (EPS $5.54 vs $4.65; revenue $17.42B) and reported a record backlog and AI-driven power demand, spurring analyst upgrades and a MarketBeat consensus rating of "Moderate Buy" with a $854.86 target (some firms as high as $1,045).
• Management cautioned that sizable 2026 tariff costs of roughly $2.2–$2.4 billion could pressure margins and partially offset the revenue strength.

Strs Ohio boosted its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 17.2% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 174,828 shares of the industrial products company's stock after purchasing an additional 25,675 shares during the quarter. Strs Ohio's holdings in Caterpillar were worth $100,154,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in Caterpillar by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after purchasing an additional 442,164 shares during the period. Wellington Management Group LLP grew its holdings in Caterpillar by 3,949.8% in the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock valued at $2,494,568,000 after purchasing an additional 5,098,964 shares during the period. Bank of New York Mellon Corp grew its holdings in Caterpillar by 20.7% in the third quarter. Bank of New York Mellon Corp now owns 3,553,930 shares of the industrial products company's stock valued at $1,695,757,000 after purchasing an additional 609,023 shares during the period. Legal & General Group Plc grew its holdings in Caterpillar by 2.2% in the third quarter. Legal & General Group Plc now owns 2,802,068 shares of the industrial products company's stock valued at $1,337,007,000 after purchasing an additional 58,993 shares during the period. Finally, Amundi grew its holdings in Caterpillar by 24.3% in the third quarter. Amundi now owns 2,375,710 shares of the industrial products company's stock valued at $1,176,870,000 after purchasing an additional 464,036 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Jefferies Financial Group boosted 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. Raymond James Financial restated a "market perform" rating on shares of Caterpillar in a report on Wednesday, January 7th. Rothschild & Co Redburn boosted their target price on shares of Caterpillar from $650.00 to $700.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Barclays boosted their price objective on shares of Caterpillar from $700.00 to $800.00 and gave the stock an "equal weight" rating in a research note on Friday. Finally, Oppenheimer set a $980.00 price objective on shares of Caterpillar and gave the stock an "outperform" rating in a research note on Friday. Sixteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $854.86.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar beat Q1 revenue and EPS expectations and reported a record backlog, driven by higher volume and pricing across construction and power systems — a core reason the stock rallied after earnings. Caterpillar expects AI-driven demand for power, construction to fuel growth — Reuters
• Positive Sentiment: Analysts sharply raised price targets and upgraded ratings (JPMorgan, Jefferies, Wells Fargo, Baird, Citigroup, Morgan Stanley among others), signaling renewed street confidence and creating upward momentum for the stock. Morgan Stanley Doubles Price Target to $915 — 247WallSt
• Positive Sentiment: Demand tied to AI/data-center buildouts is boosting Cat’s power and energy backlog; management is raising 2030 targets and plans to roughly triple power-generation capacity, which supports a multi-year growth runway beyond cyclical construction. Caterpillar to triple power generation capacity — Yahoo Finance
• Positive Sentiment: Market narrative has shifted: short interest and skeptical bears are receding as the AI-power story gains traction, amplifying upside as skeptics fold. Caterpillar’s biggest bear folds as AI power demand soars — Mining.com
• Positive Sentiment: Strategic partnerships (e.g., framework with ProPetro’s PROPWR) and large supply agreements for data-center and industrial power strengthen the revenue mix in higher-margin power systems. Caterpillar taps PROPWR and data centers — Yahoo Finance
• Neutral Sentiment: Technical momentum is strong (IBD composite rating surged toward the top of the universe) and the company announced a virtual annual shareholder meeting; these are market-interest and governance items rather than direct catalysts. IBD Composite Rating Surges — Yahoo/IBD
• Negative Sentiment: Management warned of significant tariff costs for 2026 — a $2.2B–$2.4B range — that will pressure margins and partially offset revenue strength; investors should watch margin trends and any changes to the tariff outlook. Caterpillar signals tariff cost range and 2026 sales growth — Seeking Alpha

Caterpillar Price Performance

Shares of CAT stock opened at $890.15 on Friday. The company has a market capitalization of $414.18 billion, a PE ratio of 47.30, a price-to-earnings-growth ratio of 2.05 and a beta of 1.63. The firm has a fifty day simple moving average of $746.86 and a 200-day simple moving average of $655.04. The company has a current ratio of 1.35, a quick ratio of 0.94 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a twelve month low of $318.11 and a twelve month high of $905.00.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating the consensus estimate of $4.65 by $0.89. The business had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business's quarterly revenue was up 22.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.25 earnings per share. Equities research analysts anticipate that Caterpillar Inc. will post 22.89 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be paid a $1.51 dividend. The ex-dividend date is Monday, April 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. Caterpillar's dividend payout ratio is 32.09%.

Insiders Place Their Bets

In related news, insider Lange Bob De sold 22,656 shares of the company's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $720.11, for a total value of $16,314,812.16. Following the sale, the insider directly owned 79,953 shares of the company's stock, valued at $57,574,954.83. This represents a 22.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Anthony D. Fassino sold 10,671 shares of the company's stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $680.45, for a total transaction of $7,261,081.95. Following the completion of the sale, the insider directly owned 41,151 shares in the company, valued at $28,001,197.95. This represents a 20.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 125,950 shares of company stock valued at $88,577,390. Corporate insiders own 0.33% of the company's stock.

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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