Merit Financial Group LLC Increases Stake in Caterpillar Inc. $CAT

Merit Financial Group LLC lifted its stake in shares of Caterpillar Inc. (NYSE:CAT) by 9.0% in the third quarter, HoldingsChannel.com reports. The institutional investor owned 33,382 shares of the industrial products company’s stock after purchasing an additional 2,743 shares during the period. Merit Financial Group LLC’s holdings in Caterpillar were worth $15,928,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in the company. Kilter Group LLC acquired a new position in Caterpillar during the 2nd quarter worth approximately $27,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Caterpillar during the 2nd quarter worth $28,000. Compass Financial Services Inc grew its stake in shares of Caterpillar by 49.2% during the first quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 31 shares in the last quarter. Family Legacy Financial Solutions LLC acquired a new stake in Caterpillar in the second quarter valued at $32,000. Finally, RiverPark Advisors LLC purchased a new stake in Caterpillar during the 2nd quarter worth about $32,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CAT shares. Wells Fargo & Company initiated coverage on Caterpillar in a report on Thursday, November 13th. They issued an “overweight” rating and a $675.00 price objective on the stock. Oppenheimer increased their price target on shares of Caterpillar from $513.00 to $645.00 and gave the company an “outperform” rating in a research note on Thursday, October 30th. Morgan Stanley boosted their price objective on shares of Caterpillar from $380.00 to $395.00 and gave the stock an “underweight” rating in a research report on Wednesday, December 10th. Robert W. Baird increased their target price on shares of Caterpillar from $612.00 to $680.00 and gave the company an “outperform” rating in a research report on Thursday, October 30th. Finally, Citigroup upgraded shares of Caterpillar from a “buy” rating to a “mixed” rating in a research note on Tuesday, December 16th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $616.00.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI/data‑center demand is driving a surge in generator sales, which executives and reporters say is the fastest‑growing segment and a key reason for CAT’s rally. This demand is translating into higher revenue and a re‑rating of the stock. Caterpillar’s Data Center Generators Fuel Sale Surge
• Positive Sentiment: Coverage (WSJ/MSN/Newsbytes) highlights AI as the catalyst behind higher generator orders and investor enthusiasm; several outlets tie recent price strength to this secular shift away from purely construction equipment. Caterpillar’s Surging Stock Is Fueled by AI, Not Yellow Excavators
• Positive Sentiment: Market recognition: CAT has become the Dow’s best performer this year, a sign that momentum and investor positioning are reinforcing the rally. (Includes analyst commentary on the move.) Caterpillar becomes the Dow’s best performer this year
• Positive Sentiment: Product innovation: Caterpillar introduced a Track Clamp Master Link to simplify excavator track installation — minor revenue/aftermarket benefit but supports the company’s product pipeline and aftermarket positioning. Cat’s New Track Clamp Master Link Eases Excavator Track Installation
• Neutral Sentiment: Centennial/brand pieces celebrate CAT’s 100‑year history and workforce; positive for reputation but limited direct near‑term financial impact. Celebrating 100 years and the people behind Caterpillar machines
• Neutral Sentiment: Analyst/investor debate: pieces question whether the stock is too extended after a >100% rally since April; valuation and mean reversion risks are being discussed even as fundamentals improve. Is it too late to buy Caterpillar after its bullish 2025 run?
• Neutral Sentiment: Reshoring theme: analysts include CAT among manufacturers that could benefit from reshoring trends into 2026, a structural tailwind for equipment demand. 3 Manufacturing Stocks to Benefit From Reshoring in 2026

Caterpillar Stock Down 0.2%

CAT stock opened at $577.64 on Wednesday. The company has a market cap of $270.32 billion, a price-to-earnings ratio of 29.65, a price-to-earnings-growth ratio of 2.71 and a beta of 1.57. The company has a fifty day moving average price of $570.27 and a 200 day moving average price of $481.44. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.38 and a quick ratio of 0.86. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $627.50.

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, topping the consensus estimate of $4.52 by $0.43. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The company had revenue of $17.64 billion for the quarter, compared to the consensus estimate of $16.72 billion. During the same period last year, the firm posted $5.17 EPS. Caterpillar’s revenue for the quarter was up 9.5% on a year-over-year basis. Sell-side analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th will be paid a dividend of $1.51 per share. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 annualized dividend and a yield of 1.0%. Caterpillar’s dividend payout ratio is currently 31.01%.

Insider Activity at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $571.44, for a total value of $5,714,400.00. Following the transaction, the chief financial officer directly owned 55,460 shares in the company, valued at approximately $31,692,062.40. This trade represents a 15.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Anthony D. Fassino sold 8,184 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $570.18, for a total value of $4,666,353.12. Following the sale, the insider owned 41,512 shares of the company’s stock, valued at $23,669,312.16. This trade represents a 16.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 61,895 shares of company stock worth $34,007,516 in the last ninety days. Company insiders own 0.33% of the company’s stock.

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.