Rakuten Investment Management Inc. Acquires New Stake in Caterpillar Inc. $CAT

Rakuten Investment Management Inc. bought a new position in Caterpillar Inc. (NYSE:CAT) during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 12,109 shares of the industrial products company’s stock, valued at approximately $5,778,000.

Several other large investors have also recently modified their holdings of the stock. Pacific Point Advisors LLC purchased a new stake in shares of Caterpillar during the fourth quarter valued at approximately $579,000. Brighton Jones LLC lifted its position in Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after acquiring an additional 2,519 shares in the last quarter. Maseco LLP purchased a new stake in Caterpillar during the 2nd quarter valued at $45,000. DKM Wealth Management Inc. bought a new stake in shares of Caterpillar in the 2nd quarter worth $227,000. Finally, Beacon Investment Advisory Services Inc. raised its stake in shares of Caterpillar by 10.0% in the second quarter. Beacon Investment Advisory Services Inc. now owns 26,933 shares of the industrial products company’s stock worth $10,456,000 after purchasing an additional 2,440 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Analyst Ratings Changes

Several research firms recently commented on CAT. Oppenheimer increased their price objective on Caterpillar from $645.00 to $700.00 and gave the company an “outperform” rating in a research report on Tuesday. Morgan Stanley lifted their price target on shares of Caterpillar from $380.00 to $395.00 and gave the stock an “underweight” rating in a research note on Wednesday, December 10th. Rothschild & Co Redburn boosted their price objective on shares of Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a report on Wednesday. Citigroup raised their target price on shares of Caterpillar from $690.00 to $710.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Finally, Royal Bank Of Canada began coverage on shares of Caterpillar in a research note on Wednesday, October 22nd. They set a “sector perform” rating and a $560.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $633.35.

Caterpillar Stock Up 0.4%

Shares of CAT stock opened at $648.27 on Friday. The company has a current ratio of 1.38, a quick ratio of 0.86 and a debt-to-equity ratio of 1.34. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $655.78. The stock has a market cap of $303.38 billion, a P/E ratio of 33.28, a P/E/G ratio of 2.49 and a beta of 1.57. The company has a 50 day simple moving average of $592.97 and a two-hundred day simple moving average of $508.92.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Monday, November 3rd. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.52 by $0.43. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The firm had revenue of $17.64 billion during the quarter, compared to the consensus estimate of $16.72 billion. During the same quarter in the previous year, the firm posted $5.17 EPS. The company’s revenue for the quarter was up 9.5% compared to the same quarter last year. On average, research analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be paid a $1.51 dividend. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is 31.01%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar expanded its AI/technology partnership with Nvidia to bring generative AI and edge computing into machines and manufacturing — a strategic push that could lift product differentiation, aftermarket services, and long-term margins. Caterpillar, Nvidia Team Up to Transform Machines and Manufacturing
• Positive Sentiment: Feature coverage highlights Caterpillar’s broader technology transformation and digital strategy, reinforcing the narrative that CAT is moving beyond heavy equipment into higher-value software and services — a tailwind for multiple-year revenue mix improvement. Building The World Through Technology At Caterpillar
• Positive Sentiment: An Oppenheimer analyst note cited by the press expects CAT’s stock to rise, providing short-term bullish analyst sentiment that can support buying interest. Caterpillar Stock Price Expected to Rise, Oppenheimer Analyst Says
• Positive Sentiment: Rothschild & Co Redburn raised its price target sharply to $650 (from $420) while keeping a neutral rating — the PT increase signals higher analyst valuation sensitivity even if the formal stance remains cautious. Rothschild & Co Redburn Adjusts Caterpillar PT
• Neutral Sentiment: Market-note: CAT recently outperformed the broader market in session-level moves, which can amplify momentum trading but is not a fundamental driver by itself. Caterpillar Surpasses Market Returns
• Neutral Sentiment: Caterpillar is scheduled to report quarterly earnings this week — an event that increases short-term volatility; investors should watch guidance, margin commentary, and orders/backlog for directional cues. Caterpillar to Release Quarterly Earnings on Thursday
• Negative Sentiment: Analysts polled by Zacks expect a decline in Caterpillar’s upcoming earnings and note the company lacks the mix of drivers typically associated with an earnings beat — this raises the risk of a negative surprise and profit-taking around the print. Analysts Estimate Caterpillar to Report a Decline in Earnings
• Negative Sentiment: Caterpillar faces an employment-related lawsuit alleging wrongful termination after a racial harassment complaint — a reputational and legal risk that could draw attention if it escalates. Caterpillar Worker Sues After Racial Harassment Report

Insider Activity at Caterpillar

In other news, CAO William E. Schaupp sold 1,200 shares of the stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $572.22, for a total value of $686,664.00. Following the completion of the sale, the chief accounting officer directly owned 1,323 shares of the company’s stock, valued at $757,047.06. This represents a 47.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the firm’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total transaction of $5,750,600.00. Following the sale, the chief financial officer owned 45,460 shares in the company, valued at $26,142,227.60. The trade was a 18.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 54,729 shares of company stock worth $31,084,308 in the last quarter. 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.