Tufton Capital Management Sells 2,156 Shares of Caterpillar Inc. $CAT

Key Points

• Tufton Capital Management cut its Caterpillar stake by 9% in the second quarter, selling 2,156 shares and retaining 21,801 shares valued at approximately $23.2 million. Caterpillar remains the fund’s fifth-largest holding and represents 3.9% of its portfolio.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share and revenue of $20.54 billion, exceeding analyst expectations; revenue rose 23.7% year over year. The company also raised its quarterly dividend to $1.63, equivalent to a 0.8% yield.
• Analyst sentiment remains positive, with Caterpillar receiving a “Moderate Buy” consensus rating and an average price target of $995.52, though concerns about elevated valuation and weaker industrial data could pressure future equipment demand.

Tufton Capital Management lowered its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 9.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 21,801 shares of the industrial products company's stock after selling 2,156 shares during the period. Caterpillar comprises 3.9% of Tufton Capital Management's portfolio, making the stock its 5th largest holding. Tufton Capital Management's holdings in Caterpillar were worth $23,216,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the business. Decker Retirement Planning Inc. lifted its stake in Caterpillar by 440.0% in the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after buying an additional 22 shares in the last quarter. Matrix Trust Co increased its position in Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after buying an additional 15 shares in the last quarter. Lam Group Inc. acquired a new position in shares of Caterpillar in the first quarter worth $26,000. Ramsey Quantitative Systems purchased a new stake in shares of Caterpillar in the second quarter valued at $48,000. Finally, Torren Management LLC acquired a new stake in shares of Caterpillar during the fourth quarter valued at $27,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Price Performance

CAT opened at $814.68 on Thursday. The company's 50 day simple moving average is $912.19 and its 200 day simple moving average is $832.06. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. Caterpillar Inc. has a 1 year low of $410.52 and a 1 year high of $1,073.46. The stock has a market capitalization of $374.49 billion, a PE ratio of 35.06, a P/E/G ratio of 1.48 and a beta of 1.60.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter last year, the firm posted $4.72 earnings per share. Caterpillar's revenue was up 23.7% on a year-over-year basis. As a group, sell-side analysts expect that Caterpillar Inc. will post 26.98 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were issued a $1.63 dividend. The ex-dividend date was 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 yield of 0.8%. Caterpillar's payout ratio is 28.06%.

Analysts Set New Price Targets

CAT has been the subject of several analyst reports. Wells Fargo & Company boosted their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. Argus lifted their price target on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Truist Financial set a $980.00 price objective on shares of Caterpillar in a research note on Wednesday, August 5th. HSBC lifted their target price on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Finally, Oppenheimer reiterated an "outperform" rating and issued a $1,118.00 price target on shares of Caterpillar in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, Caterpillar presently has an average rating of "Moderate Buy" and an average target price of $995.52.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts raised earnings forecasts. Zacks Research increased its EPS projections across several periods, including FY2027 to $30.14 from $29.01 and FY2028 to $35.97 from $34.31. The firm maintained a “Strong-Buy” rating, signaling improved confidence in Caterpillar’s long-term earnings outlook. Zacks Research estimates
• Positive Sentiment: Growth momentum remains a supporting factor. A Zacks analysis said volume-driven growth is accelerating across Caterpillar’s three segments and prompted a sharp increase in its 2026 sales outlook. The company also announced a $3 million workforce investment in Arkansas, supporting local hiring and operations. Caterpillar volume gains analysis Caterpillar workforce initiative
• Neutral Sentiment: Recent gains may be prompting profit-taking. Commentary highlighted that CAT has risen sharply over the past year, increasing attention to valuation and how much future growth is already reflected in the stock. CAT stock performance analysis
• Negative Sentiment: Weak industrial data raised demand concerns. U.S. industrial production was weaker than expected in July, prompting investors to question whether Caterpillar’s record backlog can withstand a slowdown in industrial activity and equipment demand. Weaker U.S. industrial output analysis
• Negative Sentiment: Market-wide selling pressured CAT. Caterpillar and Goldman Sachs were cited as major drags on the Dow amid a pullback in AI-related and technology-linked trades. This appears to reflect broader risk reduction and sector rotation rather than a new company-specific operational setback. Dow market pressure

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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