Andrew R J Bonfield, Chief Financial Officer of Caterpillar Inc. (NYSE:CAT), a prominent player in the machinery industry with a market capitalization of $185 billion and "GREAT" financial health according to InvestingPro, has recently sold 10,000 shares of the company’s common stock. The transaction, executed on January 16, 2025, was carried out at a weighted average price of $380.09 per share, resulting in a total sale value of approximately $3.8 million. Following this sale, Bonfield retains ownership of 45,182 shares in the company. The sale was conducted under a pre-established trading plan. The stock, trading at a P/E ratio of 17.7, has shown strong momentum with an 8.4% return over the past week. InvestingPro subscribers can access 12 additional investment tips and comprehensive insider trading analysis in the Pro Research Report.
In other recent news, Caterpillar Inc. made several significant announcements. First, the company’s Chief Human Resources Officer, Cheryl H. Johnson, is set to retire in April, ending her seven-year tenure. In financial news, Caterpillar Financial Services Corporation issued $1.25 billion in Medium-Term Notes, bolstering capital for strategic initiatives.
Turning to analyst insights, Barclays (LON:BARC) maintained an Equalweight rating on Caterpillar, recognizing copper as a growing market for the company. However, Evercore ISI downgraded Caterpillar’s stock from ’In Line’ to ’Underperform’ due to potential earnings risks and competitive pressures. DA Davidson, on the other hand, raised its price target for Caterpillar to $350, acknowledging mixed performance across sectors.
In terms of earnings, Caterpillar reported a 4% year-over-year decrease in Q3 sales, totaling $16.1 billion, primarily due to weaker performance in the Construction Industries and Resource Industries segments. Despite this, the company maintained a steady adjusted operating profit margin of 20% and an adjusted profit per share of $5.17.
Lastly, Caterpillar announced a multiyear capital investment to enhance its large reciprocating engine capacity, aiming to increase production capability by over 125% compared to 2023. The company’s backlog slightly increased to $28.7 billion, indicating healthy demand in certain sectors. All these constitute recent developments in the company’s operations.
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