Varma Mutual Pension Insurance Co Makes New Investment in Caterpillar Inc. $CAT

Varma Mutual Pension Insurance Co bought a new position in Caterpillar Inc. (NYSE:CAT) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 74,116 shares of the industrial products company’s stock, valued at approximately $78,926,000.

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

Caterpillar Stock Performance

Shares of CAT stock opened at $798.29 on Friday. The business’s 50 day simple moving average is $876.18 and its 200 day simple moving average is $838.63. Caterpillar Inc. has a one year low of $414.29 and a one year high of $1,073.46. The stock has a market capitalization of $366.95 billion, a PE ratio of 34.35, a PEG ratio of 1.38 and a beta of 1.60. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) 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 firm had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter in the previous year, the company earned $4.72 EPS. The company’s revenue for the quarter was up 23.7% on a year-over-year basis. As a group, research analysts forecast that Caterpillar Inc. will post 27.35 earnings per share for the current 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 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 dividend payout ratio (DPR) is presently 28.06%.

Insider Buying and Selling

In related news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.33% of the company’s stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI and robotics expansion: Caterpillar is collaborating with FieldAI, using physical AI, autonomy, robotics, digital twins and NVIDIA technology to improve safety, productivity and decision-making at construction sites and factories. The initiative could support higher-margin technology and services revenue over time. Caterpillar and FieldAI Advance AI-Powered Industrial Innovation
• Positive Sentiment: Data-center power demand remains a growth driver: Caterpillar’s Power & Energy business is benefiting from rising electricity needs tied to data centers and artificial-intelligence infrastructure. Retail sales to power-generation users reportedly surged 72% year over year in the second quarter, strengthening the long-term growth narrative. Can CAT Stock Compound Its Way Higher?
• Positive Sentiment: Higher earnings forecast: Erste Group Bank raised its fiscal 2026 EPS estimate to $27.50 from $24.78, modestly above consensus. Caterpillar’s latest quarter also showed strong momentum, with EPS of $8.17 and revenue of $20.54 billion exceeding estimates. Caterpillar FY2026 EPS Forecast Raised by Erste Group Bank
• Neutral Sentiment: Pullback creates a valuation debate: Analysts describe the recent decline as potentially attractive, but Caterpillar still trades at a relatively elevated earnings multiple. Investors are assessing whether expected AI, power-generation and industrial growth is already reflected in the share price. That Dip in Caterpillar Stock Looks Tempting, But Don’t Ignore the Catch
• Negative Sentiment: CEO insider sale adds pressure: Chief Executive Joseph Creed sold 32,401 shares for approximately $26.2 million, reducing his holdings by 48.39%. The transaction may weigh on sentiment, although it does not necessarily indicate deteriorating business prospects. SEC Insider Transaction Filing
• Negative Sentiment: Post-earnings weakness and technical concerns: CAT’s decline since earnings suggests investors may be taking profits after the strong report, while the stock remains below its recent moving averages. A trader has also argued that the shares may be ready to be “faded,” reinforcing near-term caution. Time to Start Fading Caterpillar Stock

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Citigroup upped their price objective on Caterpillar from $1,020.00 to $1,100.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. lifted their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the stock an “overweight” rating in a research report on Wednesday, June 17th. Oppenheimer restated an “outperform” rating and issued a $1,118.00 price target on shares of Caterpillar in a research report on Tuesday, August 4th. Erste Group Bank downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Monday, July 27th. Finally, UBS Group lifted their price target on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. 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 company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average 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.