Convergence Investment Partners LLC Reduces Stake in Caterpillar Inc. $CAT

Convergence Investment Partners LLC cut its position in shares of Caterpillar Inc. (NYSE:CAT) by 86.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 706 shares of the industrial products company’s stock after selling 4,432 shares during the quarter. Convergence Investment Partners LLC’s holdings in Caterpillar were worth $500,000 as of its most recent filing with the SEC.

Other large investors also recently bought and sold shares of the company. Lam Group Inc. acquired a new stake in shares of Caterpillar in the first quarter valued at approximately $26,000. Torren Management LLC purchased a new position in shares of Caterpillar during the 4th quarter worth approximately $27,000. Frazier Financial Advisors LLC raised its position in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 33 shares during the last quarter. Cedar Mountain Advisors LLC lifted its stake in Caterpillar by 82.1% in the 1st quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company’s stock valued at $36,000 after buying an additional 23 shares in the last quarter. Finally, IFS Advisors LLC purchased a new stake in Caterpillar in the 4th quarter valued at approximately $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Wall Street sentiment remains constructive, with Caterpillar’s average brokerage recommendation still equivalent to a Buy, supporting investor confidence in the stock. Is It Worth Investing in Caterpillar (CAT) Based on Wall Street’s Bullish Views?
• Positive Sentiment: Analysts lifted Caterpillar’s modeled fair value estimate from $913.29 to $970.37, suggesting higher expectations for the stock’s intrinsic value. Caterpillar (CAT) Stock Fair Value Edges Higher After Analysts Lift Targets
• Positive Sentiment: Market coverage noted Caterpillar was among the Dow’s stronger performers, reflecting broader momentum in the shares during Tuesday’s session. Dow Rises 500 Points. It’s Not a Broad Rally.
• Neutral Sentiment: Caterpillar announced it will release second-quarter 2026 financial results on August 4, which puts investors on watch for a potentially important catalyst but does not provide new operating results yet. Caterpillar Inc. to Announce Second-Quarter 2026 Financial Results on August 4
• Neutral Sentiment: Zacks highlighted Caterpillar as one of several dividend-paying industrial names benefiting from AI-related infrastructure spending, a supportive but indirect theme for the stock. These Stocks Offer AI Exposure and Dividend Payouts
• Neutral Sentiment: A local article said Caterpillar began renovations after buying property in Texas, which is operationally interesting but unlikely to move the stock on its own. Caterpillar embarks on renovations after purchasing property in Texas

Insider Activity at Caterpillar

In related news, insider Jason Kaiser sold 5,642 shares of the firm’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the sale, the insider directly owned 9,594 shares in the company, valued at approximately $8,471,789.82. This trade represents a 37.03% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 95,773 shares of company stock valued at $87,642,635 over the last 90 days. Corporate insiders own 0.33% of the company’s stock.

Caterpillar Stock Up 2.9%

Shares of NYSE:CAT opened at $889.40 on Wednesday. The stock has a 50-day simple moving average of $929.62 and a 200-day simple moving average of $799.21. The stock has a market capitalization of $409.65 billion, a P/E ratio of 44.27, a PEG ratio of 1.69 and a beta of 1.57. 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 1.64, a quick ratio of 0.81 and a current ratio of 1.35.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm had revenue of $17.41 billion for the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the previous year, the company posted $4.25 earnings per share. Caterpillar’s revenue was up 22.2% compared to the same quarter last year. Equities analysts forecast that Caterpillar Inc. will post 24.87 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. This represents a $6.52 annualized dividend and a yield of 0.7%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar’s dividend payout ratio is 32.45%.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Evercore reissued an “outperform” rating and set a $1,103.00 price target on shares of Caterpillar in a research report on Monday, May 11th. HSBC upped their price objective on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Wells Fargo & Company boosted their target price 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. Finally, Daiwa Securities Group lifted their price target on shares of Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Fifteen research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat, Caterpillar currently has a consensus rating of “Moderate Buy” and an average price target of $980.57.

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.