Wealthfront Advisers LLC Buys Shares of 76,480 Caterpillar Inc. $CAT

Key Points

• Wealthfront Advisers initiated a 76,480-share Caterpillar position worth approximately $81.4 million in the second quarter. Institutional investors and hedge funds collectively own about 70.98% of CAT.
• Caterpillar reported strong quarterly results, with earnings of $8.17 per share and revenue of $20.54 billion, exceeding estimates; revenue increased 23.7% year over year. The company also raised its quarterly dividend to $1.63, or $6.52 annualized.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $995.52 price target, though CAT’s elevated valuation leaves it vulnerable if AI-related growth and power-equipment demand disappoint.

Wealthfront Advisers LLC bought a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 76,480 shares of the industrial products company's stock, valued at approximately $81,444,000.

Several other institutional investors have also made changes to their positions in the stock. Stonebridge Financial Group LLC lifted its position in Caterpillar by 0.7% in the 2nd 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 grew its holdings in shares of Caterpillar by 1.2% during the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock valued at $936,000 after acquiring an additional 11 shares in the last quarter. Bell Bank increased its stake in shares of Caterpillar by 0.6% in 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 during the last quarter. Cornerstone Advisory LLC raised its holdings in shares of Caterpillar by 0.7% during the first 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 in the last quarter. Finally, Advisory Resource Group boosted its position in Caterpillar by 0.8% during the fourth 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 during the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Stock Performance

CAT opened at $797.72 on Tuesday. 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 company has a market cap of $366.69 billion, a PE ratio of 34.33, a price-to-earnings-growth ratio of 1.40 and a beta of 1.60. The stock has a 50-day moving average of $889.47 and a 200-day moving average of $838.20. Caterpillar Inc. has a 52-week low of $410.52 and a 52-week high of $1,073.46.

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

Caterpillar Increases Dividend

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

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: July durable-goods orders rose 1.1%, suggesting a manufacturing rebound that could support demand for Caterpillar’s construction, mining and industrial equipment. CAT was identified as one of several industrial stocks positioned to benefit. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Positive Sentiment: Erste Group Bank reportedly expects stronger earnings for Caterpillar, adding to the constructive analyst outlook surrounding the company. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Caterpillar’s power-generation business is benefiting from rising electricity demand tied to data centers and artificial intelligence. Recent coverage points to a first-ever quarterly sales total above $20 billion and identifies power generation as an increasingly important growth engine. Forget the Industry Labels: Chevron and Caterpillar Are Both Betting on the AI Power Boom
• Positive Sentiment: The company is applying its autonomous-mining expertise to industrial AI deployment, including field-support tools such as the Cat AI Assistant. Caterpillar also committed $100 million to AI and robotics workforce training, which could improve productivity and strengthen its technology positioning. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, but the coverage notes that sell-side ratings are often overly optimistic and may have limited predictive value for CAT’s performance. Is Caterpillar a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: At a high earnings multiple, Caterpillar is increasingly being valued like a technology-growth company. That raises the risk of pressure on the stock if AI-related growth, power-equipment demand or earnings forecasts fail to exceed expectations. How AI Power Demand Transformed Caterpillar into a High-Multiple Tech Play

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Robert W. Baird set a $970.00 target price on Caterpillar in a research report on Wednesday, August 5th. Royal Bank Of Canada boosted their price target on Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a research note on Wednesday, August 5th. Wells Fargo & Company increased their price objective on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a report on Tuesday, June 23rd. Oppenheimer reaffirmed an "outperform" rating and set a $1,118.00 price objective on shares of Caterpillar in a research report on Tuesday, August 4th. Finally, Citigroup boosted their target price on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $995.52.

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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