TKG Advisors LLC Cuts Stake in Caterpillar Inc. $CAT

Key Points

• TKG Advisors LLC cut its Caterpillar stake by 23.4% in Q1, selling 1,275 shares and leaving it with 4,174 shares worth about $2.96 million.
• Caterpillar’s shares fell 6.7% as the stock faced renewed pressure from bearish sentiment, including Michael Burry revealing a short position and calling it overvalued after its AI-driven rally.
• The company recently beat quarterly earnings expectations, reporting $5.54 EPS on $17.41 billion in revenue, and it also raised its quarterly dividend to $1.63 per share.

TKG Advisors LLC reduced its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 23.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,174 shares of the industrial products company's stock after selling 1,275 shares during the quarter. Caterpillar accounts for approximately 1.2% of TKG Advisors LLC's investment portfolio, making the stock its 25th largest holding. TKG Advisors LLC's holdings in Caterpillar were worth $2,957,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Lam Group Inc. bought a new stake in shares of Caterpillar in the 1st quarter valued at about $26,000. Torren Management LLC purchased a new position in Caterpillar during the fourth quarter valued at approximately $27,000. Frazier Financial Advisors LLC raised its stake in Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after buying an additional 33 shares in the last quarter. IFS Advisors LLC purchased a new stake in Caterpillar during the fourth quarter worth $31,000. Finally, Cornerstone Financial Management LLC bought a new stake in Caterpillar during the 4th quarter valued at $32,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Trading Down 6.7%

NYSE:CAT opened at $993.24 on Thursday. The company has a market capitalization of $457.48 billion, a P/E ratio of 49.44, a PEG ratio of 2.10 and a beta of 1.57. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a 12 month low of $388.09 and a 12 month high of $1,073.46. The firm has a fifty day simple moving average of $911.90 and a 200-day simple moving average of $765.06.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.41 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the prior year, the firm earned $4.25 EPS. The firm's revenue was up 22.2% on a year-over-year basis. On average, equities research analysts anticipate that Caterpillar Inc. will post 24.66 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. Caterpillar's dividend payout ratio (DPR) is 30.06%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Negative Sentiment: Michael Burry revealed he is short Caterpillar for the first time, saying the stock looks overvalued after its AI-fueled surge, which sparked a selloff in the shares. Michael Burry says he's shorting Caterpillar for the first time after it nearly doubled in the AI-driven rally of 2026
• Negative Sentiment: Additional coverage from Financial Post, Yahoo Finance, and Business Insider echoed Burry’s bearish stance, reinforcing pressure on Caterpillar shares as investors reassess the stock’s valuation. Michael Burry’s Short Call Dents Caterpillar’s AI-Fueled Rally
• Neutral Sentiment: Despite the selloff, some recent analysis remains constructive: Caterpillar hit a 52-week high on the back of strong Q1 growth, a record backlog, Russell Top 50 inclusion, and an upbeat 2026 outlook. Caterpillar Hits 52-Week High: Should You Buy, Hold or Sell the Stock?
• Neutral Sentiment: Erste Group also raised its FY2026 EPS estimate for Caterpillar, a small positive for fundamentals, though it was not enough to offset the negative news flow. Caterpillar Inc. NYSE: CAT - Free Report

Insider Activity

In other Caterpillar news, CAO William E. Schaupp sold 360 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the transaction, the chief accounting officer directly owned 530 shares of the company's stock, valued at approximately $480,180. This trade represents a 40.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the sale, the chief financial officer owned 52,935 shares of the company's stock, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 95,773 shares of company stock valued at $87,642,635. 0.33% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research analysts have recently commented on CAT shares. UBS Group reissued a "neutral" rating and issued a $900.00 price target on shares of Caterpillar in a research report on Tuesday, June 2nd. Zacks Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Evercore reissued an "outperform" rating and set a $1,103.00 price target on shares of Caterpillar in a research report on Monday, May 11th. Wells Fargo & Company lifted their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 23rd. Finally, Rothschild & Co Redburn boosted their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $941.45.

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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