Pinnacle West Asset Management Inc. Invests $4.88 Million in Caterpillar Inc. $CAT

Pinnacle West Asset Management Inc. bought a new stake in Caterpillar Inc. (NYSE:CAT) in the second quarter, HoldingsChannel.com reports. The institutional investor bought 4,586 shares of the industrial products company’s stock, valued at approximately $4,884,000. Caterpillar makes up approximately 3.4% of Pinnacle West Asset Management Inc.’s holdings, making the stock its 4th biggest holding.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in Caterpillar in the 2nd quarter valued at about $40,457,153,000. State Street Corp lifted its position in shares of Caterpillar by 1.1% during the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock worth $20,273,039,000 after purchasing an additional 385,204 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Caterpillar by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company’s stock valued at $6,072,572,000 after purchasing an additional 94,524 shares during the last quarter. Fisher Asset Management LLC increased its holdings in shares of Caterpillar by 0.6% in the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company’s stock valued at $5,438,408,000 after purchasing an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE raised its position in Caterpillar by 16.0% in 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. Institutional investors and hedge funds own 70.98% of the company’s stock.

Analyst Ratings Changes

CAT has been the topic of several research reports. Truist Financial set a $980.00 price objective on Caterpillar in a report on Wednesday, August 5th. Zacks Research upgraded Caterpillar from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 12th. Royal Bank Of Canada upped 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. Weiss Ratings upgraded Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 19th. Finally, Sanford C. Bernstein reiterated a “market perform” rating and issued a $1,002.00 price objective on shares of Caterpillar in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $995.52.

Caterpillar Stock Performance

Shares of CAT stock opened at $798.29 on Friday. The stock has a market cap of $366.95 billion, a PE ratio of 34.35, a price-to-earnings-growth ratio of 1.38 and a beta of 1.60. The stock has a 50-day moving average of $876.18 and a 200-day moving average of $838.63. 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 Inc. has a one year low of $414.29 and a one year high of $1,073.46.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter last year, the firm earned $4.72 EPS. As a group, sell-side analysts expect that Caterpillar Inc. will post 27.35 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were given a dividend of $1.63 per share. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, July 20th. Caterpillar’s payout ratio is 28.06%.

Key Stories Impacting Caterpillar

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

Insider Activity

In related news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.33% of the stock is owned by company 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.