Caterpillar Inc (NYSE:CAT), a global leader in manufacturing construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, has reported an insider selling event. According to a recent SEC filing, the company's Chief Financial Officer, BONFIELD ANDREW R J, sold 10,000 shares of the company on January 25, 2024.
The transaction history of the insider over the past year indicates that BONFIELD ANDREW R J has sold a total of 10,000 shares and has not made any purchases of the company's stock.
The insider transaction history for Caterpillar Inc shows a trend of more insider selling than buying over the past year. There has been only 1 insider buy compared to 10 insider sells during this period.
On the valuation front, Caterpillar Inc's shares were trading at $300.04 on the day of the insider's recent sale, resulting in a market capitalization of $152.817 billion.
The company's price-earnings ratio stands at 17.01, which is above both the industry median of 14.27 and the historical median price-earnings ratio for Caterpillar Inc. This suggests a higher valuation compared to the industry and the company's own trading history.
Considering the current share price and the GuruFocus Value (GF Value) of $295.62, Caterpillar Inc has a price-to-GF-Value ratio of 1.01, indicating that the stock is Fairly Valued. The GF Value is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
The insider's decision to sell shares may be influenced by various personal or professional reasons and does not necessarily indicate a negative outlook on the company's future performance. Investors often monitor insider transactions as part of their due diligence process, as they can provide insights into insider sentiment towards the company's valuation and prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
