Short Interest in Cummins Inc. (NYSE:CMI) Grows By 35.0%

Cummins Inc. (NYSE:CMI) was the recipient of a significant increase in short interest in the month of March. As of March 31st, there was short interest totalling 2,200,000 shares, an increase of 35.0% from the March 15th total of 1,630,000 shares. Based on an average trading volume of 949,200 shares, the days-to-cover ratio is currently 2.3 days. Currently, 1.6% of the shares of the company are sold short.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Lion Street Advisors LLC lifted its stake in shares of Cummins by 7.6% during the first quarter. Lion Street Advisors LLC now owns 1,238 shares of the company’s stock valued at $388,000 after acquiring an additional 87 shares during the period. Cornerstone Wealth Management LLC increased its stake in shares of Cummins by 7.8% in the 1st quarter. Cornerstone Wealth Management LLC now owns 3,565 shares of the company’s stock valued at $1,118,000 after acquiring an additional 259 shares during the last quarter. Cardinal Capital Management lifted its holdings in shares of Cummins by 0.5% during the 1st quarter. Cardinal Capital Management now owns 21,019 shares of the company’s stock valued at $6,588,000 after purchasing an additional 103 shares in the last quarter. WD Rutherford LLC increased its stake in Cummins by 1.9% during the 1st quarter. WD Rutherford LLC now owns 10,267 shares of the company’s stock worth $2,950,000 after purchasing an additional 193 shares in the last quarter. Finally, Grove Bank & Trust increased its position in shares of Cummins by 367.5% during the first quarter. Grove Bank & Trust now owns 388 shares of the company’s stock worth $122,000 after acquiring an additional 305 shares in the last quarter. Institutional investors own 83.46% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages recently commented on CMI. Barclays upped their price objective on Cummins from $310.00 to $381.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 5th. Morgan Stanley decreased their price target on Cummins from $425.00 to $340.00 and set an “overweight” rating for the company in a research note on Wednesday. UBS Group downgraded shares of Cummins from a “buy” rating to a “sell” rating and reduced their price objective for the stock from $400.00 to $240.00 in a report on Monday, April 7th. Bank of America upgraded shares of Cummins from an “underperform” rating to a “neutral” rating and increased their price objective for the company from $354.00 to $358.00 in a report on Tuesday, January 14th. Finally, Evercore ISI increased their price target on Cummins from $408.00 to $451.00 and gave the company an “outperform” rating in a research note on Wednesday, February 19th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, Cummins presently has a consensus rating of “Hold” and a consensus price target of $346.00.

Cummins Price Performance

NYSE CMI opened at $281.37 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.31 and a quick ratio of 0.80. The firm has a market cap of $38.76 billion, a P/E ratio of 9.99, a price-to-earnings-growth ratio of 2.19 and a beta of 1.07. The stock’s 50-day moving average is $326.83 and its two-hundred day moving average is $345.26. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $387.90.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, February 4th. The company reported $5.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.70 by $0.46. The business had revenue of $8.45 billion during the quarter, compared to the consensus estimate of $8.06 billion. Cummins had a net margin of 11.57% and a return on equity of 27.12%. Cummins’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.14 EPS. On average, analysts anticipate that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 6th. Stockholders of record on Friday, February 21st were given a dividend of $1.82 per share. The ex-dividend date was Friday, February 21st. This represents a $7.28 dividend on an annualized basis and a dividend yield of 2.59%. Cummins’s payout ratio is 25.84%.

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.