Northstar Group Inc. Acquires New Stake in Caterpillar Inc. $CAT

Northstar Group Inc. acquired a new position in shares of Caterpillar Inc. (NYSE:CAT) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 2,026 shares of the industrial products company’s stock, valued at approximately $2,158,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Stonebridge Financial Group LLC boosted its holdings in Caterpillar by 0.7% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company’s stock valued at $1,741,000 after purchasing an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC boosted its stake in shares of Caterpillar by 1.2% in the second quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company’s stock valued at $936,000 after buying an additional 11 shares in the last quarter. Bell Bank raised its position in Caterpillar by 0.6% in the second quarter. Bell Bank now owns 1,865 shares of the industrial products company’s stock worth $1,986,000 after acquiring an additional 11 shares in the last quarter. Cornerstone Advisory LLC lifted its holdings in Caterpillar by 0.7% in the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company’s stock valued at $1,288,000 after acquiring an additional 12 shares during the period. Finally, Advisory Resource Group boosted its position in shares of Caterpillar by 0.8% during the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock worth $935,000 after purchasing an additional 13 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently commented on CAT. Argus raised their price objective on shares of Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Rothschild & Co Redburn upped their price target on Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Truist Financial set a $980.00 price objective on Caterpillar in a research note on Wednesday, August 5th. Jefferies Financial Group boosted their target price on Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Finally, Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. One investment 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. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $995.52.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar plans to invest approximately $890 million in its Indiana facility, supporting longer-term production capacity, regional employment and potential demand for its equipment. Caterpillar planning $890M investment in Indiana plant
• Positive Sentiment: Recent analysis highlights a substantial increase in Caterpillar’s order volume and a record backlog, suggesting future revenue visibility even though reported revenue has faced pressure. This supports the bullish case for CAT’s cyclical recovery. Before The Surge, Caterpillar Stock’s Order Book Told a Different Story
• Positive Sentiment: Analysts favor CAT over Deere in the heavy-equipment sector, citing Caterpillar’s record sales, backlog and earnings growth. Another investment article lists CAT as a way to gain exposure to infrastructure spending and broader capital investment. Caterpillar vs. Deere
• Positive Sentiment: Valuation commentary argues CAT could be undervalued by roughly 20% if its margin and cash-flow strength, backlog and upgraded outlook are sustained. The Gates Foundation Trust’s reported ownership also provides a notable institutional-ownership signal. Caterpillar Could Be 20% Undervalued
• Neutral Sentiment: A covered-call strategy is presented as a way to generate potentially 12% annualized income while waiting through a slowdown, though selling calls would cap upside if CAT rallies sharply. Can CAT Stock Yield 12% Annualized Income?
• Neutral Sentiment: Caterpillar is beginning renovations at office space in Irving, Texas. The move is operationally relevant but unlikely to materially change near-term earnings expectations. Caterpillar set to begin renovation of Irving office space
• Negative Sentiment: A worker injury at Caterpillar’s Mapleton facility introduces potential safety, regulatory and operational concerns, although the available report provides limited details on the incident. Worker injured at Caterpillar Mapleton facility
• Negative Sentiment: CAT’s premium valuation leaves less room for disappointment, while Michael Burry’s disclosed short position and discussion of a possible slowdown may add volatility. Separate analysis sees only about 4% upside from tariff-refund developments, suggesting limited near-term valuation support. Caterpillar Stock May Be 4% Undervalued

Caterpillar Price Performance

Caterpillar stock opened at $822.44 on Thursday. Caterpillar Inc. has a 52-week low of $410.52 and a 52-week high of $1,073.46. The firm has a market capitalization of $378.05 billion, a P/E ratio of 35.39, a PEG ratio of 1.42 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm has a fifty day moving average of $901.07 and a 200-day moving average of $836.76.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analysts’ expectations of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm’s quarterly revenue was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.72 earnings per share. As a group, analysts predict that Caterpillar Inc. will post 27.14 EPS for the current year.

Caterpillar Increases Dividend

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

Caterpillar 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.