Caterpillar Inc. (NYSE: CAT)
Caterpillar wasn’t having the best of days in the market today. In fact, as soon as the opening bell rang, the stock found itself in the red. While we’ve seen some ups and some downs throughout the day, the stock has stayed in the red since the open. Unfortunately, minutes ago, with a large spike downward, things went from bad to worse. Below, we’ll talk about what we’re seeing from CAT, why, and what we’ll be watching for ahead.
What We’re Seeing From CAT
As mentioned above, Caterpillar was already off to a rough start to the trading session today. Starting in the red at the opening bell, the stock continued on a downward path early on. While we saw some ups and we saw some downs, the stock ultimately remained in the red throughout the trading session. Unfortunately however, things have gone from bad to worse over the past few minutes as the stock spikes downward. Currently (11:25), CAT is trading at $93.65 per share after a loss of $0.83 per share or 0.88% thus far today.
Why The Stock Is Falling
Our partners at Tradespoon were the first to notify us of the downward spike on CAT. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it didn’t take long to dig up the story. While the company hasn’t released any fundamental news that would lead to declines, there is a rumor surfacing in the social space that’s likely the cause of the drop.
Going to your favorite social network and searching for Caterpillar stock, you’ll likely see the rumor too. The rumor is that the well known hedge fund manager, founder and president of Greenlight Capital is short the stock. Of course, this would mean that he is expecting for the stock to fall. Nonetheless, at this point, the rumor is unconfirmed.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching CAT closely. In particular, we’re interested in learning about the validity of these rumors. If Einhorn is short, we may just be seeing the tip of the iceberg. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]