Caterpillar (NYSE:CAT) Stock Price Down 2.4% After Insider Selling

Key Points

• Caterpillar shares fell 2.4% to $778.59 after CEO Joseph E. Creed sold 32,401 shares for approximately $26.2 million, reducing his direct ownership by 48.39%.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $995.52; several firms recently raised their targets to as high as $1,100.
• Caterpillar reported strong quarterly results, with earnings of $8.17 per share and revenue of $20.54 billion, while revenue rose 23.7% year over year. The company also increased its quarterly dividend to $1.63 per share.

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s share price was down 2.4% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $774.55 and last traded at $778.59. 2,943,217 shares traded hands during trading, an increase of 2% from the average daily volume of 2,889,508 shares. The stock had previously closed at $797.47.

Specifically, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Analysts Set New Price Targets

CAT has been the subject of several recent analyst reports. HSBC upped their price target on Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Truist Financial set a $980.00 target price on Caterpillar in a report on Wednesday, August 5th. Barclays upped their target price on Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. Citigroup lifted their price target on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, Rothschild & Co Redburn boosted their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $995.52.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Erste Group Bank raised its fiscal 2026 EPS forecast for Caterpillar to $27.50 from $24.78, above the current analyst consensus of $27.14. The firm nevertheless kept a “Hold” rating. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Analyst sentiment remains generally favorable, with Caterpillar receiving a consensus “Moderate Buy” rating and an optimistic average brokerage recommendation. These ratings may help support the stock, though sell-side recommendations can be biased toward positive views. Caterpillar Receives Consensus Rating of Moderate Buy
• Positive Sentiment: July durable-goods orders rose 1.1%, highlighting potential strengthening in manufacturing activity. Caterpillar was identified as one of several industrial stocks that could benefit from a manufacturing rebound. Industrial Stocks and Durable Goods Orders
• Neutral Sentiment: A commentary on Caterpillar’s pullback is drawing investor attention, but the available report does not identify a new fundamental catalyst or specific price target. Why We’re Watching the Caterpillar Stock Pullback
• Negative Sentiment: CEO Joseph E. Creed sold 32,401 shares worth approximately $26.2 million, reducing his position by 48.39%. While the transaction may be routine or personal, investors can interpret a large executive sale as a negative near-term sentiment signal. SEC Insider Trading Filing
• Negative Sentiment: Caterpillar was among the leading decliners in a broader Dow selloff, with losses in CAT and NVIDIA contributing materially to the index’s weakness. This indicates that today’s pressure is partly market-wide rather than solely company-specific. NVIDIA and Caterpillar Lead Dow Decline

Caterpillar Trading Down 2.4%

The company has a market capitalization of $357.89 billion, a P/E ratio of 33.50, a P/E/G ratio of 1.40 and a beta of 1.60. The company has a 50-day simple moving average of $889.47 and a 200 day simple moving average of $838.20. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to analysts' expectations of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.Caterpillar's revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the prior year, the business earned $4.72 earnings per share. Sell-side analysts expect that Caterpillar Inc. will post 27.14 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were issued a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date of this dividend was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar's payout ratio is currently 28.06%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Lam Group Inc. bought a new stake in shares of Caterpillar in the 1st quarter worth approximately $26,000. Frazier Financial Advisors LLC increased its position in shares of Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 33 shares during the period. Decker Retirement Planning Inc. raised its stake in shares of Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 22 shares in the last quarter. Cornerstone Financial Management LLC bought a new position in Caterpillar in the fourth quarter worth $32,000. Finally, Matrix Trust Co boosted its stake in Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after buying an additional 15 shares in the last quarter. Institutional investors own 70.98% of the company's stock.

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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