Caterpillar (NYSE:CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.
Insider selling during the last 30 days
Here is a table of Caterpillar's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Jananne Copeland||CAO||April 30||9,110||No||6,869 shares||57.0%|
|Bradley Halverson||CFO||April 29||19,638||No||38,315 shares||33.9%|
|James Buda||EVP||April 29||33,548||No||57,282 shares||36.9%|
There have been 62,296 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Caterpillar's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 202,790 shares sold, and there have been zero shares purchased by insiders since January 2013.
Caterpillar reported the first-quarter financial results on April 24 with the following highlights:
|Net income||$922 million|
All three of these insiders sold their shares after these results.
Caterpillar's revenues peaked in 2012.
Caterpillar's 2014 guidance is as follows:
|Revenue||$56 billion plus or minus 5%|
|Qtrly Rev Growth (yoy):||0.00||0.03||0.11||0.08|
|PEG (5 yr expected):||1.32||1.38||1.69||N/A|
Caterpillar has the highest P/S ratio among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Deere & Company has also seen intensive insider selling during the last 30 days.
There have been three different insiders selling Caterpillar, and there have not been any insiders buying Caterpillar during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Caterpillar has an insider ownership of 0.23%.
Before going short Caterpillar, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, flat revenue growth, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.