Cummins Inc. (NYSE:CMI) Sees Large Increase in Short Interest

Cummins Inc. (NYSE:CMI) saw a large growth in short interest in the month of May. As of May 31st, there was short interest totalling 2,660,000 shares, a growth of 45.4% from the May 15th total of 1,830,000 shares. Currently, 2.0% of the company’s shares are sold short. Based on an average daily volume of 2,250,000 shares, the days-to-cover ratio is currently 1.2 days.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. StockNews.com raised Cummins from a “hold” rating to a “buy” rating in a research report on Wednesday, May 8th. The Goldman Sachs Group raised their price target on Cummins from $270.00 to $306.00 and gave the stock a “neutral” rating in a report on Tuesday, April 16th. Evercore ISI upped their price objective on shares of Cummins from $231.00 to $244.00 and gave the company an “in-line” rating in a report on Tuesday, February 20th. Robert W. Baird lowered their target price on shares of Cummins from $298.00 to $295.00 and set a “neutral” rating for the company in a research note on Friday, May 3rd. Finally, UBS Group upgraded shares of Cummins from a “neutral” rating to a “buy” rating and upped their price target for the company from $254.00 to $321.00 in a research note on Friday, March 15th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $284.36.

Insiders Place Their Bets

In other news, VP Marvin Boakye acquired 1,745 shares of the firm’s stock in a transaction that occurred on Monday, May 20th. The stock was purchased at an average cost of $286.04 per share, for a total transaction of $499,139.80. Following the completion of the acquisition, the vice president now directly owns 1,745 shares of the company’s stock, valued at approximately $499,139.80. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other Cummins news, VP Marvin Boakye acquired 1,745 shares of Cummins stock in a transaction that occurred on Monday, May 20th. The stock was bought at an average price of $286.04 per share, with a total value of $499,139.80. Following the completion of the purchase, the vice president now directly owns 1,745 shares of the company’s stock, valued at approximately $499,139.80. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Jeffrey T. Wiltrout bought 282 shares of the company’s stock in a transaction on Friday, May 24th. The shares were bought at an average cost of $285.11 per share, for a total transaction of $80,401.02. Following the transaction, the vice president now directly owns 1,262 shares in the company, valued at approximately $359,808.82. The disclosure for this purchase can be found here. 0.56% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cummins

Several hedge funds have recently bought and sold shares of the stock. Blair William & Co. IL raised its position in shares of Cummins by 4.6% in the third quarter. Blair William & Co. IL now owns 13,319 shares of the company’s stock worth $3,043,000 after acquiring an additional 582 shares during the period. Kestra Advisory Services LLC boosted its position in Cummins by 9.2% during the third quarter. Kestra Advisory Services LLC now owns 45,668 shares of the company’s stock worth $10,433,000 after purchasing an additional 3,849 shares in the last quarter. Wealthsource Partners LLC grew its holdings in Cummins by 3.3% in the third quarter. Wealthsource Partners LLC now owns 3,081 shares of the company’s stock valued at $704,000 after purchasing an additional 97 shares during the period. Rafferty Asset Management LLC increased its position in shares of Cummins by 10.1% in the third quarter. Rafferty Asset Management LLC now owns 11,271 shares of the company’s stock valued at $2,575,000 after buying an additional 1,032 shares in the last quarter. Finally, Korea Investment CORP raised its stake in shares of Cummins by 97.1% during the 3rd quarter. Korea Investment CORP now owns 180,046 shares of the company’s stock worth $41,133,000 after buying an additional 88,699 shares during the period. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Cummins Stock Performance

Shares of NYSE:CMI traded down $3.90 during midday trading on Friday, reaching $266.48. The company’s stock had a trading volume of 897,844 shares, compared to its average volume of 784,398. The firm has a market capitalization of $36.45 billion, a PE ratio of 19.51, a P/E/G ratio of 1.66 and a beta of 1.02. The stock has a fifty day moving average of $286.06 and a 200 day moving average of $265.54. Cummins has a twelve month low of $212.80 and a twelve month high of $304.24. The company has a quick ratio of 0.84, a current ratio of 1.34 and a debt-to-equity ratio of 0.57.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Thursday, May 2nd. The company reported $5.10 earnings per share for the quarter, missing the consensus estimate of $5.11 by ($0.01). The company had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.36 billion. Cummins had a return on equity of 25.38% and a net margin of 5.70%. On average, equities analysts expect that Cummins will post 18.84 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 6th. Investors of record on Friday, May 24th were given a dividend of $1.68 per share. This represents a $6.72 annualized dividend and a yield of 2.52%. The ex-dividend date was Thursday, May 23rd. Cummins’s dividend payout ratio is currently 49.19%.

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.