What Will Happen to Caterpillar Inc. Next? The Stock Just Had Huge Bearish Options Activity

 What Will Happen to Caterpillar Inc. Next? The Stock Just Had Huge Bearish Options Activity

In today’s session Caterpillar Inc. (CAT) recorded an unusually high (1,022) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2016 put, expecting serious CAT decrease. With 1,022 contracts traded and 20364 open interest for the Dec, 16 contract, it seems this is a quite bearish bet. The option with symbol: CAT161216P00087000 closed last at: $0.24 or 31.4% down. About 2.21 million shares traded hands. Caterpillar Inc. (NYSE:CAT) has risen 24.77% since April 25, 2016 and is uptrending. It has outperformed by 18.75% the S&P500.

Analysts await Caterpillar Inc. (NYSE:CAT) to report earnings on January, 26. They expect $0.66 EPS, down 10.81% or $0.08 from last year’s $0.74 per share. CAT’s profit will be $384.65 million for 35.91 P/E if the $0.66 EPS becomes a reality. After $0.85 actual EPS reported by Caterpillar Inc. for the previous quarter, Wall Street now forecasts -22.35% 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. Argus Research upgraded the shares of CAT in a report on Tuesday, April 26 to “Buy” rating. The stock has “Equal Weight” rating given by Barclays Capital on Friday, September 25. The stock has “Buy” rating given by Stifel Nicolaus on Friday, September 25. Credit Suisse maintained it with “Outperform” rating and $87 target price in Monday, April 4 report. The stock of Caterpillar Inc. (NYSE:CAT) has “Underperform” rating given on Friday, September 25 by Macquarie Research. The rating was initiated by Axiom Capital on Thursday, September 24 with “Sell”. On Wednesday, July 29 the stock rating was downgraded by TheStreet to “Hold”. BMO Capital Markets maintained it with “Market Perform” rating and $68 target price in Friday, September 25 report. Goldman Sachs downgraded the shares of CAT in a report on Monday, January 25 to “Sell” rating. The rating was initiated by Deutsche Bank with “Buy” on Wednesday, September 7.

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.
Apg Asset Mngmt Nv reported 2.08 million shares or 0.3% of all its holdings. Bradley Foster And Sargent Inc Ct last reported 117,941 shares in the company. Firstmerit Bancshares N A Trustee holds 28,085 shares or 0.17% of its portfolio. Reliance Tru Of Delaware holds 0.09% or 15,661 shares in its portfolio. Gw Henssler & Assocs, a Georgia-based fund reported 5,060 shares. Tiaa Cref Investment Mgmt Llc, a New York-based fund reported 1.99M shares. Nationwide Fund Advsrs, a Pennsylvania-based fund reported 213,007 shares. Sumitomo Mitsui Trust Incorporated last reported 1.74M shares in the company. Bokf Na owns 55,130 shares or 0.15% of their US portfolio. Herndon Mgmt Lc accumulated 54 shares or 0% of the stock. Moreover, Leavell Mgmt has 0.22% invested in Caterpillar Inc. (NYSE:CAT) for 19,888 shares. The California-based Pillar Pacific Mgmt Limited has invested 0.78% in Caterpillar Inc. (NYSE:CAT). Nikko Asset Management Americas has 6,800 shares for 0.05% of their US portfolio. Dimensional Fund Advsr L P holds 3.70M shares or 0.16% of its portfolio. Moreover, Glg Ltd Liability has 0.12% invested in Caterpillar Inc. (NYSE:CAT) for 20,379 shares.

Insider Transactions: Since May 31, 2016, the stock had 1 insider buy, and 4 sales for $665,973 net activity. On Tuesday, May 31 Halverson Bradley M sold $41,661 worth of the stock or 574 shares. Shares for $443,238 were sold by Copeland Jananne A. on Wednesday, November 9. Shares for $159,708 were bought by Muilenburg Dennis A. DICKINSON DANIEL M sold $88,844 worth of Caterpillar Inc. (NYSE:CAT) on Thursday, November 10.

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 $55.25 billion. The Firm operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. It has a 54.91 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: Investorplace.com which released: “Here’s What’s Driving Caterpillar Inc. Stock Higher (CAT)” on November 28, 2016, also Fool.com with their article: “A Look at Caterpillar, Inc.’s Retail Sales Over the Years Is Depressing” published on November 22, 2016, Fool.com published: “Better Buy: Caterpillar Inc. vs. United Technologies” on November 15, 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 Fool.com‘s news article titled: “What the Upcoming CEO Shuffle Means for Caterpillar Inc.” with publication date: November 01, 2016.

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