Caterpillar (NYSE:CAT) Stock Price Down 3.4% on Insider Selling

Key Points

• Caterpillar shares fell 3.4% after insider selling, with the stock trading below its prior close amid heavier-than-usual volume.
• Executives Denise C. Johnson, William E. Schaupp, and Anthony D. Fassino all sold shares recently, though each still retained meaningful holdings in the company.
• Despite the pullback, analysts remain broadly constructive: Caterpillar has a Moderate Buy consensus, and recent reports raised price targets as high as $1,103.

Caterpillar Inc. (NYSE:CAT - Get Free Report) dropped 3.4% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $880.20 and last traded at $888.8980. Approximately 2,818,093 shares changed hands during trading, an increase of 4% from the average daily volume of 2,696,898 shares. The stock had previously closed at $920.22.

Specifically, insider Denise C. Johnson sold 6,196 shares of the company's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $909.79, for a total value of $5,637,058.84. Following the sale, the insider owned 49,825 shares in the company, valued at approximately $45,330,286.75. This represents a 11.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO William E. Schaupp sold 360 shares of the company's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the sale, the chief accounting officer owned 530 shares in the company, valued at approximately $480,180. This trade represents a 40.45% decrease in their position. The SEC filing for this sale provides additional information. In other Caterpillar news, insider Anthony D. Fassino sold 16,283 shares of the company's stock in a transaction dated 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 sale, the insider owned 46,041 shares in the company, valued at approximately $42,210,388.80. This represents a 26.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. DA Davidson increased their price target on shares of Caterpillar from $650.00 to $845.00 and gave the company a "neutral" rating in a report on Monday, May 4th. Wells Fargo & Company increased their price target on shares of Caterpillar from $960.00 to $1,050.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Weiss Ratings reiterated a "buy (b-)" rating on shares of Caterpillar in a report on Friday, May 8th. Wall Street Zen upgraded shares of Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Evercore restated an "outperform" rating and set a $1,103.00 price objective on shares of Caterpillar in a research report on Monday. Sixteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $923.14.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Rothschild & Co Redburn raised its price target on Caterpillar to $950 from $700, which signals continued upside expectations even though the firm kept a neutral rating. Rothschild & Co Redburn adjusts price target on Caterpillar to $950 from $700, maintains neutral rating
• Positive Sentiment: Caterpillar announced plans to add 600 jobs at its Sanford, North Carolina plant to build compact track loaders, a sign of strong production demand. Caterpillar hiring 600 workers at Sanford plant
• Positive Sentiment: Jim Cramer said Caterpillar is “a buy,” pointing to potential tailwinds from oil and gas, infrastructure spending, and AI data-center power demand. Jim Cramer Says “Caterpillar Is a Buy”
• Positive Sentiment: Industry research on Saudi Arabia’s construction equipment market highlighted Caterpillar as a key player in a market expected to grow steadily through 2030, supported by major infrastructure investment. Saudi Arabia Construction Equipment Industry Research 2026-2031 Featuring Caterpillar, Komatsu, Hitachi, Volvo, Liebherr, SANY, XCMG, LiuGong, JCB, Zoomlion, Hyundai, Kobelco
• Neutral Sentiment: Several commentary pieces reiterated Caterpillar’s strong execution and its role in AI-related power generation, but these were mostly opinion-driven rather than new company-specific developments. Caterpillar: A Masterclass In Execution Meeting An Irrationally Exuberant Valuation
• Negative Sentiment: Insider selling by executives Denise C. Johnson and William E. Schaupp may slightly pressure sentiment, though the sales were modest relative to their remaining holdings. Denise C. Johnson insider trade
• Negative Sentiment: Zacks warned that Caterpillar could face rising tariff-driven costs and margin pressure, estimating a $2.2 billion to $2.4 billion tariff impact in 2026. Can Caterpillar Sustain Margins Amid Rising Tariff Pressures?

Caterpillar Stock Down 3.4%

The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The firm has a market capitalization of $409.42 billion, a P/E ratio of 44.25, a P/E/G ratio of 1.81 and a beta of 1.63. The company's 50-day simple moving average is $772.09 and its two-hundred day simple moving average is $678.58.

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

Caterpillar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders 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 dividend yield of 0.7%. The ex-dividend date is Monday, April 20th. Caterpillar's dividend payout ratio (DPR) is presently 30.06%.

Institutional Trading of Caterpillar

A number of institutional investors and hedge funds have recently bought and sold shares of CAT. Pacific Point Advisors LLC bought a new stake in Caterpillar in the 4th quarter valued at $579,000. Brighton Jones LLC increased its holdings 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 during the last quarter. United Bank increased its holdings in Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after acquiring an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. increased its holdings in Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock valued at $3,551,000 after acquiring an additional 347 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in Caterpillar by 6.5% in the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock valued at $222,120,000 after acquiring an additional 34,846 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors.

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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