Cummins Inc. (NYSE:CMI) Short Interest Update

Cummins Inc. (NYSE:CMI) saw a large decline in short interest in October. As of October 31st, there was short interest totalling 1,690,000 shares, a decline of 21.8% from the October 15th total of 2,160,000 shares. Approximately 1.3% of the shares of the stock are short sold. Based on an average daily volume of 645,300 shares, the short-interest ratio is presently 2.6 days.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CMI shares. Vertical Research downgraded Cummins from a “buy” rating to a “hold” rating and set a $350.00 target price for the company. in a research report on Wednesday, November 6th. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $285.00 to $340.00 and gave the stock an “underweight” rating in a research note on Friday, October 11th. The Goldman Sachs Group boosted their target price on shares of Cummins from $324.00 to $370.00 and gave the stock a “neutral” rating in a report on Wednesday, November 6th. Citigroup increased their price target on shares of Cummins from $345.00 to $375.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Finally, StockNews.com upgraded Cummins from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, November 6th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $334.33.

Cummins Stock Performance

Shares of Cummins stock opened at $363.81 on Friday. The company has a quick ratio of 0.79, a current ratio of 1.32 and a debt-to-equity ratio of 0.43. The stock’s fifty day moving average is $326.20 and its two-hundred day moving average is $300.60. Cummins has a 52 week low of $220.02 and a 52 week high of $370.21. The company has a market capitalization of $49.91 billion, a PE ratio of 24.03, a price-to-earnings-growth ratio of 1.75 and a beta of 0.97.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, November 5th. The company reported $5.86 EPS for the quarter, topping analysts’ consensus estimates of $4.89 by $0.97. Cummins had a net margin of 6.13% and a return on equity of 26.86%. The firm had revenue of $8.46 billion for the quarter, compared to analysts’ expectations of $8.29 billion. During the same period in the prior year, the business posted $4.73 earnings per share. The business’s revenue for the quarter was up .3% on a year-over-year basis. As a group, analysts expect that Cummins will post 20.44 earnings per share for the current year.

Cummins Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 5th. Stockholders of record on Friday, November 22nd will be paid a dividend of $1.82 per share. This represents a $7.28 annualized dividend and a dividend yield of 2.00%. The ex-dividend date of this dividend is Friday, November 22nd. Cummins’s dividend payout ratio is presently 48.08%.

Insider Buying and Selling

In other Cummins news, VP Sharon R. Barner sold 2,001 shares of Cummins stock in a transaction on Monday, November 11th. The shares were sold at an average price of $358.43, for a total value of $717,218.43. Following the sale, the vice president now directly owns 20,803 shares in the company, valued at approximately $7,456,419.29. The trade was a 8.77 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Tony Satterthwaite sold 24,250 shares of the stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $308.24, for a total transaction of $7,474,820.00. Following the transaction, the senior vice president now directly owns 77,442 shares of the company’s stock, valued at $23,870,722.08. This trade represents a 23.85 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 26,413 shares of company stock valued at $8,249,879. Corporate insiders own 0.56% of the company’s stock.

Institutional Trading of Cummins

A number of large investors have recently modified their holdings of CMI. CarsonAllaria Wealth Management Ltd. purchased a new stake in shares of Cummins in the 2nd quarter worth $28,000. Cultivar Capital Inc. bought a new stake in shares of Cummins in the second quarter valued at about $28,000. Lynx Investment Advisory purchased a new stake in Cummins in the second quarter worth about $29,000. LRI Investments LLC bought a new position in Cummins during the 1st quarter worth about $31,000. Finally, Prospera Private Wealth LLC purchased a new position in Cummins during the 3rd quarter valued at about $32,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

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.