Sumitomo Mitsui Trust Group Inc. Sells 5,960 Shares of Caterpillar Inc. $CAT

Key Points

• Sumitomo Mitsui Trust Group reduced its Caterpillar position by 0.5%, selling 5,960 shares and retaining 1.31 million shares valued at approximately $1.39 billion. Institutional investors collectively own about 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 increased its quarterly dividend to $1.63 per share, equal to an annualized yield of about 0.8%.
• Analysts maintain a generally positive outlook, with Caterpillar receiving a consensus “Moderate Buy” rating and an average price target of $995.52. However, elevated share-price volatility and potential weakness in AI data-center-related demand remain risks.

Sumitomo Mitsui Trust Group Inc. cut its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 0.5% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,307,930 shares of the industrial products company's stock after selling 5,960 shares during the quarter. Caterpillar makes up about 0.8% of Sumitomo Mitsui Trust Group Inc.'s investment portfolio, making the stock its 19th largest position. Sumitomo Mitsui Trust Group Inc. owned 0.28% of Caterpillar worth $1,392,815,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of CAT. Stonebridge Financial Group LLC boosted its stake in Caterpillar by 0.7% in the second 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 raised its stake in shares of Caterpillar by 1.2% during the second quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock worth $936,000 after acquiring an additional 11 shares in the last quarter. Bell Bank raised its stake in shares of Caterpillar by 0.6% during the second quarter. Bell Bank now owns 1,865 shares of the industrial products company's stock worth $1,986,000 after acquiring an additional 11 shares in the last quarter. Cornerstone Advisory LLC lifted its holdings in shares of Caterpillar by 0.7% in the 1st quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock worth $1,288,000 after acquiring an additional 12 shares during the last quarter. 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 hedge funds and other institutional investors.

Caterpillar Price Performance

Shares of Caterpillar stock opened at $828.90 on Monday. The company's fifty day simple moving average is $908.86 and its two-hundred day simple moving average is $834.13. Caterpillar Inc. has a 12-month low of $410.52 and a 12-month high of $1,073.46. The firm has a market cap of $381.02 billion, a PE ratio of 35.67, a price-to-earnings-growth ratio of 1.45 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.

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

Caterpillar Increases Dividend

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

Analysts Set New Price Targets

A number of equities analysts recently commented on CAT shares. Jefferies Financial Group lifted their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Sanford C. Bernstein restated a "market perform" rating and set a $1,002.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. JPMorgan Chase & Co. lifted their price objective on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an "overweight" rating in a report on Wednesday, June 17th. Citigroup boosted their target price on Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Weiss Ratings upgraded Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher full-year earnings forecasts: Zacks Research raised its FY2026 EPS estimate to $26.55 from $24.51 and its Q2 2027 estimate to $7.90 from $7.17. Zacks maintained a “Strong Buy” rating, signaling confidence in Caterpillar’s earnings trajectory. Zacks Research Forecasts Stronger Earnings for Caterpillar
• Positive Sentiment: $392 million tariff refund: Caterpillar received a significant refund as duty costs declined. The benefit partially offsets approximately $400 million in tariff expenses incurred during the quarter ended June 30 and could support near-term profitability and cash flow. Caterpillar bags $392M tariff refund as duty costs shrink
• Positive Sentiment: Constructive market backdrop: Expectations for continued S&P 500 strength, resilient earnings growth and potential AI-related capital spending are supportive for industrial companies such as Caterpillar. 5 Reasons the S&P 500 Could Keep Rallying Through Year-End
• Neutral Sentiment: High volatility remains a trading risk: Options activity indicates Caterpillar’s stock could experience unusually large moves in either direction, increasing uncertainty despite favorable fundamental projections. Caterpillar Stock Is Priced To Swing Hundreds Of Dollars Either Way
• Negative Sentiment: AI data-center backlash: Proposed restrictions and political resistance to AI-related power demand in Texas and New York could delay or reduce data-center construction. That creates a risk for Caterpillar’s power-generation and related equipment demand, prompting investors to reassess the company’s growth outlook. What Is Caterpillar Facing As AI Data Center Backlash Grows?
• Negative Sentiment: Near-term estimate reduction: Zacks lowered its Q4 2026 EPS forecast to $6.47 from $6.61, suggesting some caution around the next quarterly results even though its full-year and longer-term estimates improved. Caterpillar analyst estimates

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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