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

Caterpillar Inc. (NYSE:CAT)’s share price was down 1.6% on Tuesday following insider selling activity. The company traded as low as $894.51 and last traded at $912.1740. Approximately 2,309,751 shares changed hands during mid-day trading, a decline of 15% from the average daily 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 company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. This represents 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 through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the company’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer owned 52,935 shares in the company, valued at $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other news, insider Anthony D. Fassino sold 9,152 shares of the company’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $926.25, for a total value of $8,477,040.00. Following the sale, the insider directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. JPMorgan Chase & Co. upped their price objective on Caterpillar from $860.00 to $1,125.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Bank of America lifted their price target on shares of Caterpillar from $930.00 to $989.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Evercore reissued an “outperform” rating and set a $1,103.00 price objective on shares of Caterpillar in a research note on Monday. Truist Financial set a $1,043.00 price objective on shares of Caterpillar in a research note on Friday, May 1st. Finally, HSBC upped their price objective on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $911.77.

Caterpillar Stock Performance

The company has a market cap of $420.14 billion, a price-to-earnings ratio of 45.40, a price-to-earnings-growth ratio of 1.80 and a beta of 1.63. The stock’s fifty day simple moving average is $761.80 and its two-hundred day simple moving average is $670.30. 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) last announced its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share 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 net margin of 13.33% and a return on equity of 48.21%. Caterpillar’s revenue for the quarter was up 22.2% on a year-over-year basis. During the same quarter last year, the business earned $4.25 EPS. Equities research analysts anticipate that Caterpillar Inc. will post 24.21 EPS for the current year.

Caterpillar Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th will be issued a $1.51 dividend. 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 dividend payout ratio (DPR) is 30.06%.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds have recently made changes to their positions in CAT. Illinois Municipal Retirement Fund lifted its holdings 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 worth $8,237,000 after buying an additional 1,181 shares in the last quarter. Caprock Group LLC bought a new stake in shares of Caterpillar in the 3rd quarter worth about $8,893,000. ZEGA Investments LLC increased its position in shares of Caterpillar by 149.6% in the 3rd quarter. ZEGA Investments LLC now owns 4,184 shares of the industrial products company’s stock worth $1,996,000 after purchasing an additional 2,508 shares during the last quarter. State of New Jersey Common Pension Fund D increased its position in shares of 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 worth $79,053,000 after purchasing an additional 4,010 shares during the last quarter. Finally, Juno Financial Group LLC bought a new stake in shares of Caterpillar in the 4th quarter worth about $877,000. Institutional investors and hedge funds 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.