Insider Activity Report: Caterpillar (CAT)

David Maclennan, a director at Caterpillar (CAT), recently bought 350 shares. The buy increased his position by 7 percent, and came to a total cost of $113,180.

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  • This marks the first insider buy since Maclennan bought 400 shares in February 2023, paying just under $100,000. Otherwise, company insiders have been moderate sellers of shares over the past two years, largely following the exercise of stock options.

    Overall, Caterpillar insiders own 0.2 percent of shares.

    The farm and construction equipment manufacturer is up 35 percent over the past year, slightly outperforming the S&P 500.

    Earnings have surged 84 percent, and revenues are up 2 percent, as construction demand remains strong. Caterpillar has also managed to keep its profit margins at 15 percent, a high level for an industrial company.

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  • With many long-term construction and infrastructure projects underway, Caterpillar is likely to benefit from that position for years. And shares are still inexpensive at 15 times forward earnings.

    Action to take: Long-term investors may like shares here or on any pullback. Caterpillar pays a 1.6 percent dividend, and has a history of increasing that payout over time.

    For traders, the June $350 calls, last trading for about $10.00, could see mid-double-digit returns from a further rally in shares in the months ahead. Traders may want to take a quick profit on any big jump higher in shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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