Worth Asset Management LLC Cuts Stock Position in Caterpillar Inc. $CAT

Key Points

• Worth Asset Management cut its Caterpillar position by 56.4% in the second quarter, selling 1,765 shares and retaining 1,367 shares valued at approximately $1.46 million. Institutional investors overall own nearly 71% of CAT’s outstanding stock.
• Caterpillar reported strong quarterly results, with EPS of $8.17 and revenue of $20.54 billion, beating analyst estimates; revenue rose 23.7% year over year. AI data-center construction and related power-generation demand are emerging as important growth drivers.
• Despite a “Moderate Buy” consensus rating and several raised price targets, CAT trades at a relatively high forward valuation of about 36 times earnings after more than doubling from its 12-month low. The company also increased its quarterly dividend to $1.63, an annualized yield of roughly 0.8%.

Worth Asset Management LLC trimmed its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 56.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,367 shares of the industrial products company's stock after selling 1,765 shares during the quarter. Worth Asset Management LLC's holdings in Caterpillar were worth $1,456,000 as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. Diamant Asset Management Inc. raised its position in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after acquiring an additional 3,136,020 shares during the period. Capital International Investors acquired a new stake in shares of Caterpillar in the fourth quarter valued at about $1,225,317,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Caterpillar by 573.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock worth $861,947,000 after purchasing an additional 1,281,087 shares in the last quarter. Bank of America Corp DE raised its position in shares of Caterpillar by 16.0% during the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after purchasing an additional 928,974 shares during the last quarter. Finally, Cynosure Group LLC lifted its stake in Caterpillar by 8,359.6% in the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock valued at $294,314,000 after buying an additional 507,681 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI data-center demand is emerging as a major growth driver. Caterpillar is expanding power-generation capacity to supply electricity for power-intensive hyperscale data centers. Jim Cramer highlighted the company’s generators as a key reason CAT has outperformed Deere, while other coverage described the AI infrastructure opportunity as still in its early stages. Jim Cramer Shares Key Reason Why Caterpillar’s Shares Are Higher Than Deere’s CAT Stock Alert: Caterpillar’s AI Infrastructure Boom Is Just Getting Started
• Positive Sentiment: A new hyperscaler infrastructure agreement reinforces the opportunity. Energy Vault announced a planned 1.25-gigawatt deployment of integrated power infrastructure for an AI data center, using Caterpillar generator sets through a power-generation engineering, procurement and construction partner. The agreement provides additional evidence that CAT’s energy products can benefit from data-center construction. Energy Vault Announces Strategic Agreement for Hyperscaler AI Data Center Infrastructure
• Positive Sentiment: Recent earnings and guidance remain powerful catalysts. Caterpillar reported quarterly EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion versus expectations of $19.34 billion. Revenue increased 23.7% year over year, and the company raised its 2026 sales-growth outlook as AI-related construction demand continued. Caterpillar Lifts 2026 Sales Growth Forecast as AI Buildout Powers On
• Neutral Sentiment: Analyst sentiment is supportive but not uniformly aggressive: Caterpillar carries an average “Moderate Buy” rating, and Truist expects further upside. Coverage also notes CAT has outperformed industrial-products peers this year, although much of that optimism may already be reflected in the share price. Caterpillar Receives Moderate Buy Rating
• Negative Sentiment: Profit-taking and valuation are weighing on the stock. CAT has more than doubled from its 12-month low and trades at roughly 36 times earnings, leaving investors vulnerable to consolidation after the post-earnings surge. A pullback after the rally may therefore reflect high expectations rather than a new negative company announcement.

Analyst Ratings Changes

CAT has been the topic of several research analyst reports. Sanford C. Bernstein reiterated a "market perform" rating and issued a $1,002.00 price objective on shares of Caterpillar in a report on Wednesday. Weiss Ratings restated a "buy (b-)" rating on shares of Caterpillar in a research report on Wednesday. JPMorgan Chase & Co. lifted their price target on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. Citigroup boosted their price target on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Finally, Evercore reissued an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Thirteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $995.52.

Caterpillar Trading Down 1.5%

CAT opened at $844.52 on Friday. The firm has a market capitalization of $388.20 billion, a price-to-earnings ratio of 36.34, a price-to-earnings-growth ratio of 1.57 and a beta of 1.60. The company's 50 day simple moving average is $921.04 and its two-hundred day simple moving average is $819.15. Caterpillar Inc. has a 1-year low of $405.46 and a 1-year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.81.

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 (EPS) 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 during the quarter, compared to analyst estimates of $19.34 billion. During the same period in the prior year, the business earned $4.72 earnings per share. The business's revenue was up 23.7% compared to the same quarter last year. Analysts expect that Caterpillar Inc. will post 25.84 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be issued a $1.63 dividend. This represents a $6.52 annualized dividend and a yield of 0.8%. The ex-dividend date is 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%.

Insiders Place Their Bets

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the sale, the insider directly owned 49,825 shares of the company's stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider directly owned 46,041 shares in the company, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,444 shares of company stock valued at $32,335,679 in the last three months. 0.33% of the stock is currently owned by insiders.

About Caterpillar

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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