Waterloo Capital L.P. Boosts Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Waterloo Capital increased its Caterpillar stake by 65.9% in the second quarter, bringing its holdings to 3,179 shares valued at approximately $3.385 million. Institutional investors collectively own about 70.98% of CAT.
• Caterpillar reported a strong quarter, with EPS of $8.17 exceeding estimates of $6.22 and revenue rising 23.7% year over year to $20.54 billion. The company also raised its quarterly dividend from $1.51 to $1.63 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $995.52, although high stock volatility and potential weakness in AI data-center equipment demand remain risks.

Waterloo Capital L.P. raised its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 65.9% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 3,179 shares of the industrial products company's stock after purchasing an additional 1,263 shares during the period. Waterloo Capital L.P.'s holdings in Caterpillar were worth $3,385,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently made changes to their positions in the company. Pacific Point Advisors LLC bought a new position in shares of Caterpillar during the 4th quarter worth $579,000. Brighton Jones LLC raised its stake in Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock valued at $2,688,000 after acquiring an additional 2,519 shares during the period. United Bank lifted its holdings in Caterpillar by 108.5% during the second quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after purchasing an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. boosted its position in Caterpillar by 3.9% during the second quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after purchasing an additional 347 shares during the period. Finally, Alliancebernstein L.P. boosted its position in Caterpillar by 6.5% during the second quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock worth $222,120,000 after purchasing an additional 34,846 shares during the period. 70.98% of the stock is currently owned by institutional investors.

Caterpillar News Roundup

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

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Morgan Stanley set a $915.00 price target on shares of Caterpillar and gave the company an "equal weight" rating in a research report on Friday, May 1st. Royal Bank Of Canada raised their price objective on shares of Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a report on Wednesday, August 5th. Wells Fargo & Company lifted their price objective 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. JPMorgan Chase & Co. boosted their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. Finally, Evercore restated an "outperform" rating and set a $1,103.00 target price on shares of Caterpillar in a research report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $995.52.

Caterpillar Stock Performance

Caterpillar stock opened at $828.90 on Friday. The firm's fifty day moving average price is $908.86 and its 200-day moving average price is $833.13. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The stock has a market cap of $381.02 billion, a P/E ratio of 35.67, a price-to-earnings-growth ratio of 1.45 and a beta of 1.60. Caterpillar Inc. has a fifty-two week low of $410.52 and a fifty-two week high of $1,073.46.

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

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were issued a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, July 20th. This is an increase from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio (DPR) is currently 28.06%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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