Insider Selling: Caterpillar (NYSE:CAT) Insider Sells 6,196 Shares of Stock

Key Points

• Caterpillar insider Denise Johnson sold 6,196 shares on May 13 at an average price of $909.79, totaling about $5.64 million. After the sale, she still held 49,825 shares, a drop of 11.06% in her ownership.
• CAT shares were trading near record highs, recently up to $913.81, close to the 52-week high of $931.35. The stock has risen well above its 50-day and 200-day moving averages.
• Caterpillar reported strong quarterly results and raised investor interest, beating EPS and revenue estimates with $5.54 EPS and $17.42 billion in revenue. Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and a target price around $923.14.

Caterpillar Inc. (NYSE:CAT - Get Free Report) insider Denise Johnson sold 6,196 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $909.79, for a total transaction of $5,637,058.84. Following the sale, the insider owned 49,825 shares in the company, valued at $45,330,286.75. The trade was a 11.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink.

Caterpillar Stock Performance

CAT stock traded up $11.51 during midday trading on Thursday, reaching $913.81. 937,949 shares of the company's stock traded hands, compared to its average volume of 2,682,534. The firm has a market capitalization of $420.89 billion, a PE ratio of 45.49, a price-to-earnings-growth ratio of 1.83 and a beta of 1.63. The company has a 50-day moving average price of $768.15 and a two-hundred day moving average price of $675.78. Caterpillar Inc. has a 52 week low of $336.24 and a 52 week high of $931.35. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The company 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%.The firm's revenue for the quarter was up 22.2% compared to the same quarter last year. During the same period in the previous year, the company posted $4.25 EPS. As a group, equities analysts anticipate that Caterpillar Inc. will post 24.21 EPS for the current year.

Caterpillar Announces Dividend

The company also recently declared 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 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, April 20th. Caterpillar's payout ratio is 30.06%.

Institutional Trading of Caterpillar

Institutional investors have recently added to or reduced their stakes in the business. Pacific Point Advisors LLC bought a new stake in Caterpillar in the 4th quarter worth approximately $579,000. Brighton Jones LLC boosted its position in Caterpillar by 51.5% in the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after purchasing an additional 2,519 shares during the last quarter. United Bank increased its position in shares of Caterpillar by 108.5% during the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after purchasing an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. lifted its stake in shares of Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after purchasing an additional 347 shares during the period. Finally, Alliancebernstein L.P. grew its position in Caterpillar by 6.5% during the second quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock valued at $222,120,000 after buying an additional 34,846 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have commented on CAT shares. Bank of America upped their price target on shares of Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Rothschild & Co Redburn boosted their price objective on Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research report on Thursday. Argus lifted their target price on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. UBS Group reissued a "neutral" rating and issued a $677.00 price target on shares of Caterpillar in a report on Monday, February 2nd. Finally, Truist Financial set a $1,043.00 price objective on shares of Caterpillar in a research note on Friday, May 1st. Sixteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus target price of $923.14.

Trending Headlines about Caterpillar

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, signaling more room for the stock even though it kept a neutral rating. Rothschild & Co Redburn price target update
• Positive Sentiment: Analyst commentary continues to highlight strong demand for Caterpillar’s equipment and power-generation products, especially from AI data centers and infrastructure projects. Jim Cramer article on Caterpillar demand drivers
• Positive Sentiment: Caterpillar is adding 600 jobs at its Sanford, North Carolina plant to build compact track loaders, a sign of expanding production capacity and healthy end-market demand. Caterpillar adding 600 jobs article
• Positive Sentiment: Recent coverage of Caterpillar’s strong first-quarter results and upbeat guidance has kept investor sentiment constructive, reinforcing the stock’s rerating. Caterpillar Q1 results coverage

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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