Is Buying Caterpillar Inc. Here a Winning Strategy? Option Traders Like The Stock

 Is Buying Caterpillar Inc. Here a Winning Strategy? Option Traders Like The Stock

In today’s session Caterpillar Inc. (CAT) registered an unusually high (1,010) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the February, 2017 call, expecting serious CAT increase. With 1,010 contracts traded and 6134 open interest for the Feb, 17 contract, it seems this is a quite bullish bet. The option with symbol: CAT170217C00105000 closed last at: $0.83 or 19.4% down. About 597,426 shares traded hands. Caterpillar Inc. (NYSE:CAT) has risen 17.07% since April 18, 2016 and is uptrending. It has outperformed by 12.64% the S&P500.

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. $104 is the highest target while $28 is the lowest. The $72.68 average target is -21.28% below today’s ($92.33) stock price. Caterpillar Inc. has been the topic of 43 analyst reports since July 27, 2015 according to StockzIntelligence Inc. The stock has “Buy” rating given by Stifel Nicolaus on Friday, September 25. The firm has “Equal Weight” rating given on Friday, September 25 by Barclays Capital. The rating was maintained by Barclays Capital with “Equal-Weight” on Wednesday, October 12. The firm earned “Underperform” rating on Friday, September 25 by Macquarie Research. The company was maintained on Friday, September 25 by Bank of America. The firm earned “Sell” rating on Friday, October 23 by S&P Research. On Monday, April 25 the stock rating was upgraded by Goldman Sachs to “Neutral”. As per Monday, December 7, the company rating was maintained by Goldman Sachs. Argus Research upgraded Caterpillar Inc. (NYSE:CAT) rating on Tuesday, April 26. Argus Research has “Buy” rating and $92 price target. The firm has “Buy” rating given on Tuesday, October 11 by Goldman Sachs.

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 increased to 0.98 in 2016 Q2. Its up 0.13, from 0.85 in 2016Q1. The ratio improved, 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.
Eastern Bank & Trust holds 0.07% of its portfolio in Caterpillar Inc. (NYSE:CAT) for 10,682 shares. Clarkston Prtn accumulated 0.08% or 20,400 shares. Public Sector Pension Investment Board holds 110,604 shares or 0.09% of its portfolio. Marshwinds Advisory reported 15,558 shares or 0.57% of all its holdings. Janus Capital Mngmt Lc has 83,982 shares for 0.01% of their US portfolio. Citadel Advsr Limited Liability Corp holds 0.01% or 140,135 shares in its portfolio. Tarbox Gru Inc has invested 0.18% of its portfolio in Caterpillar Inc. (NYSE:CAT). Exchange Cap Mngmt reported 125 shares or 0% of all its holdings. Kanaly Tru Company holds 2,282 shares or 0.04% of its portfolio. Segall Bryant Hamill Limited Liability has 0.08% invested in the company for 38,916 shares. Mizuho Asset Coltd holds 0.11% of its portfolio in Caterpillar Inc. (NYSE:CAT) for 8,084 shares. Delta Asset Management Lc Tn accumulated 62,123 shares or 0.82% of the stock. Moreover, Alphamark Advsr Ltd Liability Corporation has 0.05% invested in Caterpillar Inc. (NYSE:CAT) for 1,174 shares. Steinberg Glob Asset Management has 3,027 shares for 0.04% of their US portfolio. Royal Bancorp Of Canada, a Ontario – Canada-based fund reported 965,524 shares.

Insider Transactions: Since May 31, 2016, the stock had 1 insider buy, and 5 selling transactions for $707,634 net activity. $443,238 worth of Caterpillar Inc. (NYSE:CAT) was sold by Copeland Jananne A. on Wednesday, November 9. Halverson Bradley M sold $41,661 worth of stock. $88,844 worth of shares were sold by DICKINSON DANIEL M on Thursday, November 10. Muilenburg Dennis A bought 1,930 shares worth $159,708.

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 $53.69 billion. The Firm operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. It has a 53.48 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: Fool.com which released: “Better Buy: Caterpillar Inc. vs. United Technologies” on November 15, 2016, also Wsj.com with their article: “Caterpillar Earnings Preview: What to Watch” published on October 24, 2016, Fool.com published: “How a Donald Trump Presidency Could Affect Caterpillar Inc. Stock” on November 10, 2016. More interesting news about Caterpillar Inc. (NYSE:CAT) were released by: Fool.com and their article: “1 Billionaire is Shorting Caterpillar Inc.’s Stock: Should You?” published on November 04, 2016 as well as Seekingalpha.com‘s news article titled: “Beware Of Caterpillar” with publication date: November 15, 2016.

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