Gerald Johnson, a director at Caterpillar Inc. (NYSE:CAT), recently increased his stake in the company by purchasing 100 shares of common stock. The shares were acquired at a price of $398.57 each, totaling approximately $39,857. Following this transaction, Johnson now holds 2,953 shares directly. This purchase was executed under a pre-arranged trading plan, as indicated in the filing.The insider purchase comes as Caterpillar, now valued at $191 billion, maintains a GREAT financial health score according to InvestingPro analysis. The machinery giant's stock has delivered an impressive 37% return year-to-date, trading at a P/E ratio of 18.3. While current analysis suggests the stock is slightly overvalued, InvestingPro data reveals management has been actively buying back shares, with 13 additional key insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Caterpillar Inc. has seen a series of analyst rating adjustments and financial developments. Barclays (LON:BARC) held its Equalweight rating on Caterpillar, highlighting copper as a smaller but growing market for the company. Evercore ISI downgraded the stock from 'In Line' to 'Underperform', citing potential earnings risks and competitive pressures. DA Davidson raised its price target for Caterpillar to $350, citing mixed trends in the company's performance. Oppenheimer held its Perform rating, noting challenges in the fourth quarter. Lastly, Truist Securities slightly reduced its price target from $456.00 to $454.00, while maintaining a Buy rating.
Caterpillar's Q3 sales saw a 4% year-over-year decrease, totaling $16.1 billion, primarily due to weaker performance in the Construction Industries and Resource Industries segments. Despite the dip in sales, the company maintained a steady adjusted operating profit margin of 20% and an adjusted profit per share of $5.17.
The company also announced a multiyear capital investment to enhance its large reciprocating engine capacity, aiming to increase production capability by over 125% compared to 2023. Caterpillar's backlog slightly increased to $28.7 billion, indicating healthy demand in certain sectors. Caterpillar's full-year adjusted profit per share and operating profit margin expectations remain unchanged, with cash flow targets increased to the upper end of the $5 billion to $10 billion range. These are some of the recent developments that investors may find noteworthy.
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