Cummins Inc. (NYSE:CMI) Sees Significant Drop in Short Interest

Cummins Inc. (NYSE:CMI) was the target of a large decline in short interest during the month of March. As of March 31st, there was short interest totalling 2,750,000 shares, a decline of 91.5% from the March 15th total of 32,500,000 shares. Based on an average trading volume of 3,140,000 shares, the days-to-cover ratio is currently 0.9 days. Currently, 2.0% of the shares of the stock are short sold.

Analyst Ratings Changes

Several analysts have recently commented on CMI shares. Citigroup raised their target price on Cummins from $265.00 to $285.00 and gave the stock a “buy” rating in a research report on Monday, February 12th. TD Cowen lifted their price objective on Cummins from $260.00 to $272.00 and gave the company an “outperform” rating in a research report on Wednesday, February 7th. Evercore ISI lifted their price objective on Cummins from $231.00 to $244.00 and gave the company an “in-line” rating in a research report on Tuesday, February 20th. Morgan Stanley assumed coverage on Cummins in a research report on Monday, January 8th. They set an “overweight” rating and a $278.00 price objective for the company. Finally, JPMorgan Chase & Co. lifted their price objective on Cummins from $245.00 to $275.00 and gave the company an “underweight” rating in a research report on Monday, March 25th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $271.64.

Cummins Stock Up 0.2 %

NYSE CMI traded up $0.56 during trading on Thursday, hitting $302.86. 629,666 shares of the company traded hands, compared to its average volume of 2,964,365. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. The business has a fifty day simple moving average of $274.81 and a 200 day simple moving average of $245.70. The company has a market capitalization of $41.42 billion, a P/E ratio of 58.47, a PEG ratio of 2.05 and a beta of 1.04. Cummins has a 12 month low of $203.18 and a 12 month high of $304.24.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, February 6th. The company reported $4.14 EPS for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.27). The business had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.10 billion. Cummins had a return on equity of 25.68% and a net margin of 2.16%. The company’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.52 earnings per share. As a group, sell-side analysts predict that Cummins will post 18.29 EPS for the current year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 7th. Stockholders of record on Friday, February 23rd were paid a $1.68 dividend. The ex-dividend date was Thursday, February 22nd. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.22%. Cummins’s payout ratio is presently 129.73%.

Insider Buying and Selling

In related news, VP Sharon R. Barner sold 11,000 shares of Cummins stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $262.16, for a total value of $2,883,760.00. Following the transaction, the vice president now directly owns 17,874 shares in the company, valued at approximately $4,685,847.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, VP Sharon R. Barner sold 11,000 shares of the firm’s stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $262.16, for a total value of $2,883,760.00. Following the completion of the sale, the vice president now owns 17,874 shares of the company’s stock, valued at $4,685,847.84. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Tony Satterthwaite sold 37,450 shares of the firm’s stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $265.05, for a total value of $9,926,122.50. Following the completion of the sale, the senior vice president now directly owns 73,741 shares of the company’s stock, valued at approximately $19,545,052.05. The disclosure for this sale can be found here. Insiders have sold 51,289 shares of company stock worth $13,576,838 in the last three months. 1.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cummins

A number of institutional investors have recently made changes to their positions in CMI. OFI Invest Asset Management bought a new position in Cummins during the third quarter valued at about $25,000. First United Bank & Trust bought a new position in Cummins during the fourth quarter valued at about $25,000. Private Wealth Management Group LLC bought a new position in Cummins during the fourth quarter valued at about $26,000. Silver Oak Securities Incorporated bought a new position in Cummins during the third quarter valued at about $28,000. Finally, Global Wealth Strategies & Associates bought a new position in Cummins during the third quarter valued at about $29,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.