Bearish Options Activity on Caterpillar Inc. After Worse Fundamentals

 Bearish Options Activity on Caterpillar Inc. After Worse Fundamentals

In today’s session Caterpillar Inc. (CAT) recorded an unusually high (221) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious CAT decrease. With 221 contracts traded and 56074 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: CAT161118P00077500 closed last at: $0.67 or 8.1% up. About 1.70 million shares traded hands. Caterpillar Inc. (NYSE:CAT) has risen 26.13% since March 2, 2016 and is uptrending. It has outperformed by 17.87% the S&P500.

Analysts await Caterpillar Inc. (NYSE:CAT) to report earnings on October, 27. They expect $0.73 EPS, down 2.67% or $0.02 from last year’s $0.75 per share. CAT’s profit will be $422.73 million for 30.59 P/E if the $0.73 EPS becomes a reality. After $1.09 actual EPS reported by Caterpillar Inc. for the previous quarter, Wall Street now forecasts -33.03% negative EPS growth.

Caterpillar Inc. (NYSE:CAT) Ratings Coverage

Out of 21 analysts covering Caterpillar Inc. (NYSE:CAT), 6 rate it a “Buy”, 3 “Sell”, while 12 “Hold”. This means 29% are positive. $104 is the highest target while $28 is the lowest. The $71.26 average target is -20.23% below today’s ($89.33) stock price. Caterpillar Inc. has been the topic of 41 analyst reports since July 27, 2015 according to StockzIntelligence Inc. Citigroup maintained it with “Neutral” rating and $75 target price in Friday, March 18 report. Stifel Nicolaus maintained Caterpillar Inc. (NYSE:CAT) rating on Friday, September 25. Stifel Nicolaus has “Buy” rating and $86.0 price target. The rating was downgraded by Deutsche Bank on Thursday, December 17 to “Hold”. The rating was upgraded by Argus Research to “Buy” on Tuesday, April 26. The stock of Caterpillar Inc. (NYSE:CAT) has “Hold” rating given on Friday, March 18 by Jefferies. The firm has “Market Perform” rating by William Blair given on Friday, September 25. The stock of Caterpillar Inc. (NYSE:CAT) earned “Neutral” rating by Bank of America on Friday, September 25. The stock has “Buy” rating given by Deutsche Bank on Wednesday, September 7. S&P Research downgraded the stock to “Sell” rating in Friday, October 23 report. On Friday, September 25 the stock rating was maintained by BMO Capital Markets with “Market Perform”.

According to Zacks Investment Research, “Caterpillar Inc is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is one of only a handful of U.S. companies that leads its industry while competing globally from a principally domestic manufacturing base. The company records more than half of its sales to overseas customers. Their products are used in the construction, road building, mining, forestry, energy, transportation and material-handling industries.”

Insitutional Activity: The institutional sentiment decreased to 0.85 in Q2 2016. Its down 0.20, from 1.05 in 2016Q1. The ratio dropped, as 76 funds sold all Caterpillar Inc. shares owned while 363 reduced positions. 40 funds bought stakes while 331 increased positions. They now own 396.23 million shares or 3.43% less from 410.29 million shares in 2016Q1.
Regentatlantic Ltd Liability holds 25,038 shares or 0.18% of its portfolio. Asset Advisors Corp holds 0.03% or 2,194 shares in its portfolio. Jfs Wealth Ltd Com has invested 0.12% of its portfolio in Caterpillar Inc. (NYSE:CAT). Jp Marvel Investment Advsr Ltd Llc, a Massachusetts-based fund reported 11,964 shares. Eaton Vance Mngmt holds 0.11% of its portfolio in Caterpillar Inc. (NYSE:CAT) for 494,858 shares. Atlantic Grp Limited Company has invested 0.01% of its portfolio in Caterpillar Inc. (NYSE:CAT). Balasa Dinverno & Foltz Ltd Limited Liability Company accumulated 0.06% or 4,422 shares. South State holds 0.25% of its portfolio in Caterpillar Inc. (NYSE:CAT) for 22,413 shares. The Texas-based Argentus Mgmt Llc has invested 0.12% in Caterpillar Inc. (NYSE:CAT). Commonwealth Equity Inc holds 0.16% of its portfolio in Caterpillar Inc. (NYSE:CAT) for 251,127 shares. Gfs Advisors Lc holds 1.45% or 79,265 shares in its portfolio. Courier Corp owns 2,722 shares or 0.04% of their US portfolio. Guggenheim Capital Ltd has 0.12% invested in the company for 486,149 shares. Adirondack Comm has 0.77% invested in the company for 14,342 shares. Contravisory Inv Mgmt Incorporated holds 0% or 28 shares in its portfolio.

Insider Transactions: Since April 26, 2016, the stock had 3 buys, and 4 insider sales for $1.77 million net activity. 574 shares with value of $41,661 were sold by Halverson Bradley M on Tuesday, May 31. Muilenburg Dennis A bought $159,708 worth of stock or 1,930 shares. Copeland Jananne A. also sold $58,563 worth of Caterpillar Inc. (NYSE:CAT) on Friday, July 29. CALHOUN DAVID L bought $1.94M worth of stock or 25,000 shares.

Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company has a market cap of $51.73 billion. The Firm operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. It has a 47.89 P/E ratio. It also provides financing and related services through its Financial Products segment.

CAT Company Profile

Caterpillar Inc. (Caterpillar), incorporated on March 12, 1986, is a maker of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Firm operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. The Firm also provides financing and related services through its Financial Products segment. The Firm offers its products under the brand names Caterpillar, CAT, design versions of CAT and Caterpillar, Electro-Motive, FG Wilson, MaK, MWM, Perkins, Progress Rail, SEM and Solar Turbines. The Firm operates parts distribution centers at various locations, including Morton, Illinois; Mossville, Illinois; Arvin, California; Denver, Colorado; Miami, Florida; Atlanta, Georgia; St. Paul, Minnesota; Southaven, Mississippi; Clayton, Ohio; Houston, Pennsylvania; York, Pennsylvania; Waco, Texas; Van Alstyne, Texas; Duffield, Virginia; Spokane, Washington; Melbourne, Australia; Stapylton, Australia; Queensland, Australia; Grimbergen, Belgium; Piracicaba, Brazil; Shanghai, China; Dortmund, Germany; Lunen, Germany; San Luis Potosi, Mexico; Singapore, Republic of Singapore; Moscow, Russia; Johannesburg, South Africa, and Dubai, United Arab Emirates.

More important recent Caterpillar Inc. (NYSE:CAT) news were published by: Fool.com which released: “Better Buy: Caterpillar Inc. vs. Illinois Tool Works” on October 05, 2016, also Fool.com published article titled: “Excited About Caterpillar Inc.’s Latest Big Buy Rating? Think Again”, Fool.com published: “Better Buy Today: Caterpillar Inc. vs. ABB Ltd.” on September 07, 2016. More interesting news about Caterpillar Inc. (NYSE:CAT) was released by: Prnewswire.com and their article: “Caterpillar Affirms Commitment to Egypt’s Infrastructure Development” with publication date: September 29, 2016.

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