Taking a Fresh Look at Caterpillar Inc. (CAT)

Caterpillar Inc. (CAT) is an interesting player in the Industrial Goods space, with a focus on Farm & Construction Machinery. The stock has been active on the tape, currently trading at $126.40, down from yesterday’s close by -0.27%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the Industrial Goods space and offers its own combination of interesting factors Caterpillar Inc. (CAT) currently trades with a market capitalization of $75.01 Billion.



The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CAT, the company currently has $52 Million of cash on the books, which is offset by $13.38 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $4.29 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.24 on a per share basis this quarter. Perhaps, that suggests something about why 70.81% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Caterpillar Inc. recorded a 52-week high of $127.09. It is now trading 0.69% off that level. The stock is trading $118.29 its 50-day moving average by -8.11%. The stock carved out a 52-week low down at $80.33.

In recent action, Caterpillar Inc. (CAT) has made a move of +7.33% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.45, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.57% with $590.05 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CAT.

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