Caterpillar Stock Draws in Bears Despite Earnings Win

The blue chip reported better-than-expected earnings and revenue

Caterpillar Inc. (NYSE:CAT) stock is up 3.2% to trade at $326.79 at last check, after the blue chip reported better-than-expected earnings and revenue for the second quarter. The company noted higher prices for larger excavators and equipment offset slower demand in North America.

The shares are bouncing off a familiar floor at $310, which served as a launching pad in February to their April 8, record high of $382.01. While CAT has cooled from that peak, it looks to be relying on support from the 200-day moving average, now sports a 36.1% nine-month lead, and is on its way to snap a three-day losing streak. 

The brokerage bunch is yet to chime in on the results, but firms lean mostly bearish toward Caterpillar stock. In fact, 12 of the 19 analysts in coverage call the equity a tepid “hold” or worse.

Options bears are not holding back, however, with 9,262 puts traded so far, which is double the intraday average volume. The most active is the weekly 8/9 300-strike put, followed by the 280-strike put in the same series

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