Retirement Systems of Alabama Reduces Stock Position in Caterpillar Inc. $CAT

Retirement Systems of Alabama decreased its position in Caterpillar Inc. (NYSE:CAT) by 0.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 230,879 shares of the industrial products company’s stock after selling 2,049 shares during the quarter. Caterpillar makes up 0.7% of Retirement Systems of Alabama’s investment portfolio, making the stock its 20th largest position. Retirement Systems of Alabama owned 0.05% of Caterpillar worth $245,863,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of CAT. Pacific Point Advisors LLC purchased a new position in Caterpillar during the 4th quarter valued at about $579,000. Brighton Jones LLC raised its position in Caterpillar by 51.5% during the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after purchasing an additional 2,519 shares during the last quarter. United Bank lifted 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 buying an additional 2,125 shares during the period. Schnieders Capital Management LLC. grew its position in shares of Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock worth $3,551,000 after buying an additional 347 shares during the last quarter. Finally, Alliancebernstein L.P. increased 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 buying an additional 34,846 shares during the period. 70.98% of the stock is owned by institutional investors.

Analyst Ratings Changes

CAT has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. upped their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Evercore reissued an “outperform” rating and set a $1,103.00 price objective on shares of Caterpillar in a research report on Monday, May 11th. UBS Group upped their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Rothschild & Co Redburn raised their target price on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Finally, Daiwa Securities Group boosted their price target on shares of Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $995.52.

Caterpillar Trading Up 1.7%

NYSE CAT opened at $828.90 on Friday. The firm has a market capitalization of $381.02 billion, a PE ratio of 35.67, a P/E/G ratio of 1.45 and a beta of 1.60. The stock’s 50 day moving average is $908.86 and its 200 day moving average is $833.13. Caterpillar Inc. has a twelve month low of $410.52 and a twelve month high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data 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 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 the consensus estimate of $19.34 billion. During the same quarter in the prior year, the company earned $4.72 earnings per share. The firm’s quarterly revenue was up 23.7% compared to the same quarter last year. Research analysts forecast that Caterpillar Inc. will post 27.14 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently declared 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 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Monday, July 20th. This is a positive change 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: 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

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.