William E Schaupp Takes Money Off The Table, Sells $686K In Caterpillar Stock

William E Schaupp, Chief Accounting Officer at Caterpillar (NYSE:CAT), disclosed an insider sell on November 6, according to a recent SEC filing.

What Happened: After conducting a thorough analysis, Schaupp sold 1,200 shares of Caterpillar. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $686,664.

As of Friday morning, Caterpillar shares are down by 2.51%, currently priced at $555.5.

Delving into Caterpillar's Background

Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments are construction, resource, energy, and transportation. Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has a global reach that is approximately evenly balanced between the US and the rest of the world. Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of over 150 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.

Key Indicators: Caterpillar's Financial Health

Positive Revenue Trend: Examining Caterpillar's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.45% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a high gross margin of 31.86%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Caterpillar's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 4.91.

Debt Management: With a high debt-to-equity ratio of 2.01, Caterpillar faces challenges in effectively managing its debt levels, indicating potential financial strain.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Caterpillar's P/E ratio of 29.26 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.19 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 20.81, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Cracking Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Caterpillar's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.