Can Caterpillar Inc.’s Tomorrow Be Different? Option Trader Are Very Bearish

 Can Caterpillar Inc.'s Tomorrow Be Different? Option Trader Are Very Bearish

In today’s session Caterpillar Inc. (CAT) recorded an unusually high (1,190) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious CAT decrease. With 1,190 contracts traded and 28784 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: CAT161021P00085000 closed last at: $0.72 or 11.1% down. About 3.27M shares traded hands. Caterpillar Inc. (NYSE:CAT) has risen 20.54% since March 14, 2016 and is uptrending. It has outperformed by 14.93% the S&P500.

Analysts await Caterpillar Inc. (NYSE:CAT) to report earnings on October, 27. They expect $0.73 earnings per share, down 2.67% or $0.02 from last year’s $0.75 per share. CAT’s profit will be $429.96 million for 29.86 P/E if the $0.73 EPS becomes a reality. After $1.09 actual earnings per share 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 22 analysts covering Caterpillar Inc. (NYSE:CAT), 7 rate it a “Buy”, 3 “Sell”, while 12 “Hold”. This means 32% are positive. Caterpillar Inc. has been the topic of 43 analyst reports since July 27, 2015 according to StockzIntelligence Inc. The firm has “Sell” rating given on Monday, January 25 by Goldman Sachs. Macquarie Research maintained Caterpillar Inc. (NYSE:CAT) rating on Friday, September 25. Macquarie Research has “Underperform” rating and $58 price target. The company was upgraded on Thursday, March 24 by OTR Global. The stock of Caterpillar Inc. (NYSE:CAT) earned “Neutral” rating by Citigroup on Friday, September 25. The company was maintained on Friday, September 25 by BMO Capital Markets. As per Wednesday, September 7, the company rating was initiated by Deutsche Bank. Deutsche Bank downgraded it to “Hold” rating and $60 target price in Thursday, December 17 report. The stock of Caterpillar Inc. (NYSE:CAT) has “Neutral” rating given on Wednesday, July 27 by Citigroup. Deutsche Bank maintained it with “Buy” rating and $80 target price in Monday, September 28 report. The rating was downgraded by OTR Global on Monday, September 19 to “Mixed”.

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 is negative, 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.
Pekin Singer Strauss Asset Mgmt Il accumulated 6,295 shares or 0.1% of the stock. Teachers Retirement Systems Of The State Of Kentucky last reported 261,400 shares in the company. Vaughan David Inc Il has invested 1.22% of its portfolio in Caterpillar Inc. (NYSE:CAT). Moody Bancorp Tru Division holds 0.02% or 5,220 shares in its portfolio. Richard Bernstein Advsrs Limited Liability Co has 0.25% invested in the company for 34,620 shares. Beech Hill Advsr has 5,740 shares for 0.29% of their US portfolio. Massachusetts Fincl Svcs Ma accumulated 0.09% or 2.45M shares. Citigroup reported 198,777 shares or 0.02% of all its holdings. Windsor Ltd Liability Corp last reported 0.32% of its portfolio in the stock. Wills Financial Grp Inc reported 2,804 shares or 0.18% of all its holdings. Glg Partners Limited Partnership holds 0.02% or 6,900 shares in its portfolio. Charter Tru Com holds 0.68% or 76,696 shares in its portfolio. Barrett Asset Mngmt Ltd Liability Corporation holds 0.03% or 5,000 shares in its portfolio. Atlanta Cap last reported 0.63% of its portfolio in the stock. Nelson Roberts Lc has 566 shares for 0.02% of their US portfolio.

Insider Transactions: Since April 26, 2016, the stock had 3 buys, and 4 sales for $1.77 million net activity. $1.94M worth of Caterpillar Inc. (NYSE:CAT) was bought by CALHOUN DAVID L on Tuesday, April 26. $235,036 worth of Caterpillar Inc. (NYSE:CAT) was sold by Halverson Bradley M. Muilenburg Dennis A had bought 1,128 shares worth $80,099. Copeland Jananne A. sold $58,563 worth of stock or 706 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 $51.36 billion. The Firm operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. It has a 46.75 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 notable recent Caterpillar Inc. (NYSE:CAT) news were published by: Wsj.com which released: “Caterpillar CEO to Step Down at Year’s End” on October 17, 2016, also Seekingalpha.com with their article: “Is Caterpillar Inc. A Buy?” published on October 16, 2016, Fool.com published: “Better Buy: Caterpillar Inc. vs. Deere” on October 11, 2016. More interesting news about Caterpillar Inc. (NYSE:CAT) were released by: Fool.com and their article: “Better Buy: Caterpillar Inc. vs. Illinois Tool Works” published on October 05, 2016 as well as Fool.com‘s news article titled: “Excited About Caterpillar Inc.’s Latest Big Buy Rating? Think Again” with publication date: September 27, 2016.

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