Caterpillar (NYSE:CAT) Trading Down 1.2% Following Insider Selling

Key Points

• Caterpillar shares fell 1.2% after insider selling news, trading below the prior close amid lighter-than-usual volume.
• Insiders including Anthony D. Fassino and CFO Andrew R. J. Bonfield sold tens of thousands of shares in recent transactions, reducing their stakes by roughly 23% to 26%.
• Despite the stock dip, analysts remain largely constructive: Caterpillar has a Moderate Buy consensus and an average price target of $911.77, while recent earnings beat estimates and revenue rose 22.2% year over year.

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s stock price traded down 1.2% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $897.38 and last traded at $901.2220. 1,892,230 shares were traded during mid-day trading, a decline of 30% from the average session volume of 2,695,528 shares. The stock had previously closed at $912.14.

Specifically, insider Anthony D. Fassino sold 16,283 shares of the business'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 completion of the transaction, the insider directly owned 46,041 shares in the company, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer owned 52,935 shares of the company's stock, valued at $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other news, insider Anthony D. Fassino sold 9,152 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $926.25, for a total transaction of $8,477,040.00. Following the transaction, the insider owned 46,041 shares in the company, valued at $42,645,476.25. This represents a 16.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Analysts Set New Price Targets

Several research firms have recently issued reports on CAT. Barclays upped their price objective on shares of Caterpillar from $700.00 to $800.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Evercore restated an "outperform" rating and set a $1,103.00 price objective on shares of Caterpillar in a report on Monday. CICC Research began coverage on shares of Caterpillar in a report on Friday, February 6th. They set an "outperform" rating on the stock. Bank of America upped their price objective on shares of Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a report on Friday, May 1st. Finally, Oppenheimer set a $980.00 price objective on shares of Caterpillar and gave the company an "outperform" rating in a report on Friday, May 1st. Sixteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $911.77.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Argus raised its price target on Caterpillar (CAT) to $990 from $820 and reiterated a Buy rating, citing expectations for strong demand and continued business momentum. Argus Lifts PT on Caterpillar Inc. (CAT), Expects Strong Demand
• Positive Sentiment: Caterpillar’s 2025 Annual and Sustainability Reports highlighted record full-year sales and revenues, along with a refreshed strategy focused on profitable growth. Caterpillar Inc. Releases 2025 Annual and Sustainability Reports
• Positive Sentiment: Recent coverage emphasized Caterpillar’s strong first-quarter results, upbeat full-year guidance, and progress on its share buyback program, reinforcing the bullish case for the stock. Caterpillar (CAT) Is Up 5.9% After Strong Q1...
• Positive Sentiment: Commentary also pointed to Caterpillar’s growing exposure to AI-related power demand, especially backup and primary power systems for data centers, which could expand a long-term growth driver. Seeking Alpha article on Caterpillar and AI power bottleneck
• Neutral Sentiment: Jim Cramer also said Caterpillar is a buy, adding to the positive tone, though the segment did not introduce new fundamental information. Cramer's lightning round: Buy Caterpillar
• Negative Sentiment: Insider Anthony D. Fassino sold 16,283 shares at an average price of $916.80, which can be a mild overhang even though he still retains a meaningful stake. Anthony Fassino Sells 16,283 Shares of Caterpillar NYSE: CAT Stock

Caterpillar Trading Down 1.2%

The stock has a 50-day moving average of $765.20 and a 200 day moving average of $673.10. The stock has a market cap of $415.10 billion, a PE ratio of 44.86, a price-to-earnings-growth ratio of 1.86 and a beta of 1.63. 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 issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.Caterpillar's revenue for the quarter was up 22.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.25 earnings per share. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 24.21 earnings per share for the current year.

Caterpillar Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th will be given a $1.51 dividend. 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 currently 30.06%.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently bought and sold shares of the stock. Illinois Municipal Retirement Fund raised its stake in Caterpillar by 7.3% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 17,262 shares of the industrial products company's stock valued at $8,237,000 after purchasing an additional 1,181 shares during the last quarter. Caprock Group LLC acquired a new position in Caterpillar in the 3rd quarter valued at $8,893,000. ZEGA Investments LLC raised its stake in Caterpillar by 149.6% in the 3rd quarter. ZEGA Investments LLC now owns 4,184 shares of the industrial products company's stock valued at $1,996,000 after purchasing an additional 2,508 shares during the last quarter. State of New Jersey Common Pension Fund D raised its stake in Caterpillar by 2.5% in the 3rd quarter. State of New Jersey Common Pension Fund D now owns 165,677 shares of the industrial products company's stock valued at $79,053,000 after purchasing an additional 4,010 shares during the last quarter. Finally, Juno Financial Group LLC acquired a new position in Caterpillar in the 4th quarter valued at $877,000. Hedge funds and other institutional investors own 70.98% 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.

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