Susan C. Schwab, a director at Caterpillar Inc. (NYSE:CAT), has sold shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. On November 15, Schwab sold a total of two shares at a price of $383.20 each, amounting to a total transaction value of $766.
Following this transaction, Schwab now holds 10,846 shares of Caterpillar stock. The filing notes that the share count includes dividends that have been accrued. The transaction was executed directly by Schwab, as indicated in the filing.
This sale is part of the regular reporting requirements for company insiders, ensuring transparency for investors and the public. Caterpillar, headquartered in Irving, Texas, is a leading manufacturer in the construction machinery and equipment sector.
In other recent news, Caterpillar Inc. has seen a series of analyst adjustments following its Q3 earnings report. Barclays (LON:BARC) maintained an Equalweight rating on Caterpillar, highlighting the growing importance of copper as a market for the company. However, Evercore ISI downgraded the stock to 'Underperform', citing potential earnings risks and competitive pressures. DA Davidson raised its price target for Caterpillar to $350, noting mixed trends in the company's performance.
Truist Securities slightly reduced its price target from $456.00 to $454.00 but maintained a Buy rating. Caterpillar's Q3 sales decreased 4% year-over-year to $16.1 billion, primarily due to weaker performance in the Construction Industries and Resource Industries segments. Nonetheless, the company maintained a steady adjusted operating profit margin of 20% and an adjusted profit per share of $5.17.
Caterpillar also announced a multiyear capital investment to increase its large reciprocating engine capacity by over 125% compared to 2023. The company'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 among the recent developments for Caterpillar Inc.
InvestingPro Insights
While Susan C. Schwab's recent sale of Caterpillar Inc. (NYSE:CAT) shares was relatively small, it's worth examining the company's broader financial picture to provide context for investors. According to InvestingPro data, Caterpillar boasts a substantial market capitalization of $185.43 billion, underscoring its position as a prominent player in the Machinery industry.
The company's financial health appears robust, with a P/E ratio of 17.7, suggesting a reasonable valuation relative to earnings. This is further supported by an InvestingPro Tip indicating that Caterpillar is trading at a low P/E ratio relative to its near-term earnings growth, which could be attractive to value-oriented investors.
Caterpillar's commitment to shareholder returns is evident in its dividend policy. An InvestingPro Tip highlights that the company has raised its dividend for 11 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. With a current dividend yield of 1.47% and a dividend growth rate of 8.46% over the last twelve months, Caterpillar demonstrates a strong track record of rewarding its shareholders.
It's also noteworthy that management has been aggressively buying back shares, as pointed out by another InvestingPro Tip. This strategy often signals confidence in the company's future prospects and can potentially increase shareholder value.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Caterpillar, providing a deeper dive into the company's financial health and market position.
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