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

Cummins Inc. (NYSE:CMI) was the target of a large decline in short interest in the month of June. As of June 15th, there was short interest totalling 2,450,000 shares, a decline of 7.9% from the May 31st total of 2,660,000 shares. Based on an average daily trading volume, of 963,300 shares, the short-interest ratio is presently 2.5 days. Currently, 1.8% of the shares of the company are short sold.

Insider Buying and Selling

In related news, VP Sharon R. Barner sold 3,880 shares of the business’s stock in a transaction on Tuesday, May 7th. The stock was sold at an average price of $286.86, for a total value of $1,113,016.80. Following the completion of the sale, the vice president now directly owns 20,873 shares in the company, valued at approximately $5,987,628.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, VP Sharon R. Barner sold 3,880 shares of the business’s stock in a transaction that occurred on Tuesday, May 7th. The stock was sold at an average price of $286.86, for a total value of $1,113,016.80. Following the completion of the sale, the vice president now directly owns 20,873 shares in the company, valued at $5,987,628.78. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Marvin Boakye acquired 1,745 shares of the company’s stock in a transaction on Monday, May 20th. The stock was bought at an average cost of $286.04 per share, with a total value of $499,139.80. Following the completion of the acquisition, the vice president now directly owns 1,745 shares in the company, valued at $499,139.80. The disclosure for this purchase can be found here. 0.56% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cummins

A number of institutional investors have recently modified their holdings of the company. First United Bank & Trust bought a new stake in Cummins during the fourth quarter valued at $25,000. LRI Investments LLC bought a new stake in shares of Cummins during the 1st quarter valued at about $31,000. Private Wealth Management Group LLC acquired a new stake in Cummins during the fourth quarter worth approximately $26,000. JNBA Financial Advisors increased its holdings in Cummins by 1,111.1% in the first quarter. JNBA Financial Advisors now owns 109 shares of the company’s stock worth $32,000 after purchasing an additional 100 shares in the last quarter. Finally, Silver Oak Securities Incorporated acquired a new position in Cummins in the third quarter valued at approximately $28,000. 83.46% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. StockNews.com upgraded Cummins from a “hold” rating to a “buy” rating in a research note on Wednesday, May 8th. Citigroup initiated coverage on Cummins in a research note on Wednesday, June 26th. They set a “buy” rating and a $320.00 target price for the company. The Goldman Sachs Group raised their price target on shares of Cummins from $270.00 to $306.00 and gave the company a “neutral” rating in a research note on Tuesday, April 16th. TD Cowen lifted their price target on shares of Cummins from $272.00 to $292.00 and gave the company a “buy” rating in a report on Friday, May 10th. Finally, UBS Group raised shares of Cummins from a “neutral” rating to a “buy” rating and increased their price objective for the company from $254.00 to $321.00 in a research note on Friday, March 15th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and six have given a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $287.18.

Cummins Trading Up 1.7 %

Shares of Cummins stock traded up $4.58 during trading on Wednesday, hitting $272.13. The company’s stock had a trading volume of 504,655 shares, compared to its average volume of 2,060,036. The stock has a market cap of $37.22 billion, a price-to-earnings ratio of 19.92, a price-to-earnings-growth ratio of 1.73 and a beta of 0.99. Cummins has a 52 week low of $212.80 and a 52 week high of $304.24. The stock has a 50-day moving average price of $281.44 and a two-hundred day moving average price of $269.48. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 0.84.

Cummins (NYSE:CMI) last released its quarterly earnings results on Thursday, May 2nd. The company reported $5.10 EPS for the quarter, missing analysts’ consensus estimates of $5.11 by ($0.01). Cummins had a net margin of 5.70% and a return on equity of 25.38%. The company had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.36 billion. Equities research analysts anticipate that Cummins will post 18.86 EPS for the current fiscal year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 6th. Shareholders of record on Friday, May 24th were issued a dividend of $1.68 per share. The ex-dividend date of this dividend was Thursday, May 23rd. This represents a $6.72 annualized dividend and a yield of 2.47%. Cummins’s payout ratio is 49.19%.

About Cummins

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.