Caterpillar (NYSE:CAT) Stock Price Down 1.6% on Insider Selling

Key Points

• Caterpillar shares fell 1.6% after insider selling, with the stock trading below its prior close amid lighter-than-average volume.
• Insiders including Anthony D. Fassino and CFO Andrew R. J. Bonfield sold sizable blocks of shares, totaling tens of millions of dollars and reducing their ownership stakes.
• Despite the pullback, analysts remain broadly positive: Caterpillar has a Moderate Buy consensus, and the company recently beat quarterly earnings and revenue expectations while also announcing a quarterly dividend of $1.51 per share.

Caterpillar Inc. (NYSE:CAT - Get Free Report) shares traded down 1.6% on Tuesday after an insider sold shares in the company. The stock traded as low as $894.51 and last traded at $912.1740. 2,309,751 shares changed hands during mid-day trading, a decline of 15% from the average session volume of 2,710,021 shares. The stock had previously closed at $926.79.

Specifically, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the completion of the sale, the insider directly owned 46,041 shares of the company's stock, valued at $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the sale, the chief financial officer directly owned 52,935 shares of the company's stock, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In related news, insider Anthony D. Fassino sold 9,152 shares of the business's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $926.25, for a total value of $8,477,040.00. Following the completion of the sale, the insider directly owned 46,041 shares of the company's stock, valued at $42,645,476.25. The trade was a 16.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CAT. UBS Group reaffirmed a "neutral" rating and issued a $677.00 target price on shares of Caterpillar in a report on Monday, February 2nd. Rothschild & Co Redburn upped their target price on shares of Caterpillar from $650.00 to $700.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Argus upped their target price on shares of Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Royal Bank Of Canada upped their target price on shares of Caterpillar from $587.00 to $658.00 and gave the company a "sector perform" rating in a report on Friday, January 30th. Finally, Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Sixteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $911.77.

Caterpillar Stock Down 1.6%

The stock has a market capitalization of $420.14 billion, a PE ratio of 45.40, a PEG ratio of 1.80 and a beta of 1.63. The firm's fifty day moving average is $761.80 and its 200-day moving average is $670.30. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.65 by $0.89. The firm had revenue of $17.42 billion during the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm's revenue for the quarter was up 22.2% on a year-over-year basis. During the same period in the prior year, the company posted $4.25 earnings per share. On average, equities research analysts predict that Caterpillar Inc. will post 24.21 earnings per share for the current year.

Caterpillar Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, April 20th. Caterpillar's dividend payout ratio is presently 30.06%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Caterpillar by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after acquiring an additional 442,164 shares in the last quarter. State Street Corp raised its position in 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 acquiring an additional 385,204 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Caterpillar by 0.9% in 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 stake in shares of Caterpillar by 0.6% during the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock worth $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 shares of Caterpillar by 16.0% during 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. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Company 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.

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