What happened
According to a recent SEC filing dated Aug. 12, 2025, Pacer Advisors, Inc. sold 1,376,018 shares of Caterpillar(CAT -2.21%), bringing its holding to 38,262 shares worth $15.79 million. The estimated trade value of the sale was $458.56 million, based on the average share price over the most recent quarter.
The fund reported $40.23 billion in reportable U.S. equity assets as of June 30, 2025.
What else to know
This was a significant reduction; Caterpillar now accounts for just 0.04% of the fund's 13F assets under management.
As of Aug. 12, 2025, Caterpillar shares were priced at $412.71, up 14.7% over the past year, outperforming the S&P 500 by 3.3 percentage points over the past year.
Dividend yield: 1.39% as of Aug. 12, 2025; forward price-to-earnings ratio for fiscal year 2026: 19.17; enterprise value to EBITDA (trailing twelve months, as of June 30, 2025): 15.91; five-year revenue compound annual growth rate: 3.8%.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $193.35 billion |
| Revenue (TTM) | $63.14 billion |
| Net income (TTM) | $9.44 billion |
| Dividend yield | 1.39% |
Company snapshot
- Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and related products and services.
- Generates revenue through equipment sales, aftermarket parts, financial services, and solutions for construction, mining, energy, and transportation sectors.
- Serves global customers in construction, mining, energy, transportation, and industrial markets, including contractors, mining companies, and infrastructure developers.
Caterpillar is a global leader in industrial equipment, leveraging a diverse product portfolio and integrated solutions to serve customers worldwide. The company's scale and broad presence across construction, mining, and energy markets provide resilience and growth opportunities.
Foolish take
Pacer Advisors offloaded 1,376,018 shares in Caterpillar in the second quarter, according to its SEC filings. Although the exact price is unknown (the $458.6 million estimate is based on the average from April to June), it was less than the current price.
That's not too critical, because I think Pacer made the right decision. Caterpillar has some exciting and topical growth drivers, for example, its power generation business, which grew revenue 28% in the second quarter on a year-over-year basis, driven by data center spending. Moreover, its worldwide machines and energy & transportation retail sales (Caterpillar sells through dealers) grew at a 3% rate in the first and second quarters.
On the other hand, management now expects its full-year services revenue (a key part of its plan to reduce the cyclicality of its earnings) to be flat on 2024. In addition, its operating profit continues to decline (down 18% in the second quarter) with a combination of tariff cost headwinds and unfavorable price realization (difference between list price and actual price) dragging it down.
In addition, there's no guarantee that a commodity supercycle will occur to benefit Caterpillar's infrastructure, resources, and construction machinery sales over the long term. Now trading at more than 24 times estimated free cash flow in 2025, Caterpillar doesn't look like an excellent value stock.
Glossary
Form 13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
13F assets: U.S. equity securities reported in a Form 13F filing, representing a subset of a manager's total AUM.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Forward price-to-earnings ratio: Price-to-earnings ratio using projected earnings for the next fiscal year.
Enterprise value to EBITDA (EV/EBITDA): Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; measures company valuation.
Compound annual growth rate (CAGR): The mean annual growth rate of an investment over a specified period.
TTM:The 12-month period ending with the most recent quarterly report.
Aftermarket parts: Replacement parts sold for equipment after the initial sale, often for maintenance or repair.
Stake: The amount or percentage of ownership an investor holds in a company.
Quarterly average price: The average price of a security over a three-month reporting period.
Outperforming: Achieving a higher return or growth rate than a benchmark or comparable group.
