Vanguard Group Inc. Boosts Stake in Caterpillar Inc. $CAT

Key Points

• Vanguard raised its stake in Caterpillar by 1.0% in Q4 to 46,385,185 shares — about 9.91% of the company, valued at roughly $26.57 billion.
• Earnings beat: Caterpillar reported $5.16 EPS vs. $4.67 expected and revenue of $19.13 billion (up 17.9% year‑over‑year), with analysts projecting about 22.88 EPS for the fiscal year.
• Caterpillar announced a quarterly dividend of $1.51 per share (annualized $6.04, ~0.7% yield) and has attracted multiple price‑target upgrades—its consensus rating is a "Moderate Buy" with a $767.77 target.

Vanguard Group Inc. grew its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 1.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 46,385,185 shares of the industrial products company's stock after buying an additional 442,164 shares during the period. Vanguard Group Inc. owned 9.91% of Caterpillar worth $26,572,681,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the business. Revolve Wealth Partners LLC raised its position in Caterpillar by 2.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 681 shares of the industrial products company's stock worth $390,000 after buying an additional 16 shares during the last quarter. Security Financial Services INC. raised its position in Caterpillar by 0.4% during the 4th quarter. Security Financial Services INC. now owns 3,609 shares of the industrial products company's stock worth $2,068,000 after buying an additional 16 shares during the last quarter. Purus Wealth Management LLC raised its position in Caterpillar by 0.5% during the 4th quarter. Purus Wealth Management LLC now owns 3,018 shares of the industrial products company's stock worth $1,729,000 after buying an additional 16 shares during the last quarter. KWB Wealth raised its position in Caterpillar by 3.2% during the fourth quarter. KWB Wealth now owns 549 shares of the industrial products company's stock valued at $315,000 after acquiring an additional 17 shares in the last quarter. Finally, Montecito Bank & Trust lifted its holdings in Caterpillar by 0.5% in the fourth quarter. Montecito Bank & Trust now owns 3,362 shares of the industrial products company's stock valued at $1,926,000 after acquiring an additional 17 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Down 0.6%

CAT stock opened at $830.59 on Friday. The stock has a market capitalization of $386.46 billion, a P/E ratio of 44.13, a P/E/G ratio of 1.96 and a beta of 1.52. The firm has a 50-day simple moving average of $740.91 and a 200-day simple moving average of $646.65. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. Caterpillar Inc. has a 52 week low of $302.17 and a 52 week high of $845.27.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping analysts' consensus estimates of $4.67 by $0.49. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $19.13 billion during the quarter, compared to analysts' expectations of $17.81 billion. During the same quarter in the previous year, the company earned $5.14 earnings per share. The company's quarterly revenue was up 17.9% on a year-over-year basis. Equities analysts forecast that Caterpillar Inc. will post 22.88 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

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

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Robert W. Baird upgraded CAT and raised its price target sharply (from $805 to $940), citing stronger fundamentals and boosting short‑term sentiment — this upgrade helped drive recent upside. Caterpillar NYSE: CAT Stock Price Up 3.3% Following Analyst Upgrade
• Positive Sentiment: Caterpillar reaffirmed its dividend (quarterly $1.51, paid May 19), supporting shareholder-return expectations and attracting income-focused investors. Caterpillar Inc. (CAT) Asserts Commitment to Shareholder Value Amid Management Change
• Positive Sentiment: Analysts and screens expect Caterpillar earnings to continue growing into the next report — that prospect of further earnings beats is a fundamental positive supporting the rally. Caterpillar (CAT) Earnings Expected to Grow: Should You Buy?
• Positive Sentiment: Longer-term thematic coverage highlights CAT’s exposure to AI/data‑center power and automation, reframing the company beyond traditional heavy equipment and supporting a higher multiple for some investors. More Than Just Dirt: Caterpillar Is the AI Stock Nobody Saw Coming
• Neutral Sentiment: CFO Andrew Bonfield announced retirement in October; internal successor Kyle Epley will take over in May — management continuity reduces disruption risk, but any leadership change bears watching. Caterpillar (CAT) CFO Andrew Bonfield to Retire
• Neutral Sentiment: Several pieces call out the very strong short‑term run (30–90 day gains) and prompt a valuation check — this fuels both bullish momentum and investor caution about stretched multiples. Caterpillar (CAT) Valuation Check After A Strong Short Term Share Price Run
• Negative Sentiment: Morgan Stanley raised its numerical target slightly but kept an Underweight rating, signaling macro and cyclical downside risk to earnings that could pressure the stock if industrial demand softens. Morgan Stanley Ups Caterpillar (CAT) Target to $430, Flags Macro Risks to Earnings
• Negative Sentiment: Critical commentary and "avoid" pieces warn that the post‑earnings rally may have priced in too much growth — these narratives can accelerate profit‑taking by momentum traders. 3 Reasons to Avoid CAT and 1 Stock to Buy Instead

Analyst Ratings Changes

A number of research analysts have issued reports on CAT shares. DA Davidson boosted their price target on Caterpillar from $569.00 to $650.00 and gave the company a "neutral" rating in a report on Monday, February 2nd. Jefferies Financial Group lifted their price objective on shares of Caterpillar from $825.00 to $900.00 and gave the company a "buy" rating in a report on Wednesday, April 15th. Royal Bank Of Canada lifted their price objective on shares of Caterpillar from $587.00 to $658.00 and gave the company a "sector perform" rating in a report on Friday, January 30th. Bank of America lifted their price target on Caterpillar from $735.00 to $825.00 and gave the company a "buy" rating in a research note on Tuesday, February 10th. Finally, Wells Fargo & Company lifted their price target on Caterpillar from $870.00 to $960.00 and gave the company an "overweight" rating in a research note on Tuesday. Sixteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Caterpillar presently has an average rating of "Moderate Buy" and a consensus target price of $767.77.

Insider Buying and Selling at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 2,500 shares of the company's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $718.93, for a total value of $1,797,325.00. Following the completion of the sale, the chief executive officer directly owned 35,083 shares in the company, valued at $25,222,221.19. This represents a 6.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Anthony D. Fassino sold 7,891 shares of the company's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $776.90, for a total value of $6,130,517.90. Following the completion of the sale, the insider owned 46,643 shares of the company's stock, valued at approximately $36,236,946.70. The trade was a 14.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 125,950 shares of company stock valued at $88,577,390. 0.33% of the stock is owned by company insiders.

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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