Caterpillar (CAT) Is Amongst The Notable Names Insiders Are Loading Up On After the Recent Crash Muhammad Ali Tue, November 10, 2026 at 2:10 PM EST 4 min read CAT -2.66% ^GSPC -0.47% ^DJI -0.28% ^IXIC -0.95% Trade CAT on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of 10 Buy the Dip Stocks Insiders Are Loading Up On After the Recent Market Sell-Off, and Caterpillar Inc. (NYSE:CAT) ranked 8th on this list.
Thursday, November 5 represented the worst trading session for the U.S. market in over a year. the Nasdaq Composite dropped 5.52%, the S&P 500 fell 4.36%, and the Dow shed 3.44%, as Wall Street's post-midterm optimism could not last long. Concerns around a potential weakness in AI spending reversed the post-election rally and led to almost $2.5 trillion wiped out of the U.S. market.
In the middle of this chaos, many names showed resistance and are still trading at their all-time highs. In our recent list of 10 Best All-Time High Stocks to Buy According to Wall Street, we uncover some of the stocks that still offer captivating upside to investors.
Various market sectors took a hit, including semiconductors which got affected the most. Technology was also amongst the worst-performing segments, dipping almost 8%. Just two days prior to the November 5 crash, we covered Warren Buffett's list of the 10 best stocks with attractive upside potential.
Situations like this trigger fear within the market. But for corporate insiders, including company executives and directors, it offers attractive entry points. These insiders have a more detailed understanding of their businesses compared to investors and analysts. They know about a company's growth prospects, margin potential, and product pipelines way before the market does.
Hence, a drop in share price does not necessarily mean that their stance on the company's outlook would also change. Through open-market purchases out of their own pockets, the insiders send some clear signals to the market. Unlike stock awards or option exercises, these purchases come out of personal savings, and no one is forced to make them.
Caterpillar Inc. is amongst the stocks that have seen a notable amount of insider purchases from October 6 to November 6, following a major market sell-off. Stock awards and option exercises have been excluded from these qualifying purchases. The share price has gone down by more than 36% over a one month period, as of November 6.
Caterpillar Inc. (NYSE:CAT) has dropped significantly from its record peak of $1,073.46 back in June. The bearish trend can be attributed to a cooling sentiment around the AI-infrastructure build-out, which had earlier supported the stock's rally. Although the data center demand still continues to support power and energy sales growth, the company has delivered lower-than-expected revenue figures for traditional construction industries.
Board member James C. Fish Jr. bought 1,000 shares at a price of $620.39 on November 2, for a total consideration of $620,390. The purchase increased his reported position in Caterpillar by almost 27%, which now stands at a total of 4,714 common shares. You can see the history of insider purchases in CAT here.
The company's record backlog of $78 billion offers strong visibility through the turn of the decade. Profitability metrics remain encouraging as it generated 20.19% operating margin and 15.21% net margin over the trailing twelve months. With management's expectations of full-year topline growth in mid-to-high teens, Caterpillar ranked #2 in our list of 10 Best Dow Stocks to Buy for 2027.
Data tracked across 1,000+ hedge funds by Insider Monkey still shows significant amount of institutional interest in the stock. This is despite a drop in the number of hedge funds holding positions. As per 13F filings, hedge fund ownership declined from 87 funds in Q1 2026 to 84 funds in the following quarter.
While we acknowledge the risk and potential of CAT as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than CAT that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.
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This article is originally published at Insider Monkey.
