Short Interest in Cummins Inc. (NYSE:CMI) Declines By 7.7%

Cummins Inc. (NYSE:CMI) was the target of a significant drop in short interest in the month of October. As of October 15th, there was short interest totalling 2,160,000 shares, a drop of 7.7% from the September 30th total of 2,340,000 shares. Currently, 1.6% of the company’s shares are sold short. Based on an average daily volume of 687,200 shares, the short-interest ratio is currently 3.1 days.

Cummins Stock Performance

Shares of Cummins stock traded up $0.15 on Friday, reaching $329.13. 153,238 shares of the company traded hands, compared to its average volume of 1,513,569. Cummins has a 52 week low of $212.80 and a 52 week high of $340.82. The company has a 50 day moving average of $318.55 and a 200 day moving average of $296.87. The firm has a market capitalization of $45.11 billion, a PE ratio of 23.73, a PEG ratio of 1.90 and a beta of 0.98. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.34 and a quick ratio of 0.82.

Cummins (NYSE:CMI) last released its earnings results on Thursday, August 1st. The company reported $5.26 earnings per share for the quarter, beating analysts’ consensus estimates of $4.85 by $0.41. The firm had revenue of $8.80 billion during the quarter, compared to the consensus estimate of $8.33 billion. Cummins had a net margin of 5.69% and a return on equity of 25.73%. The company’s revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.18 EPS. Equities analysts forecast that Cummins will post 19.96 earnings per share for the current year.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 5th. Shareholders of record on Friday, November 22nd will be issued a $1.82 dividend. This represents a $7.28 annualized dividend and a yield of 2.21%. The ex-dividend date of this dividend is Friday, November 22nd. Cummins’s payout ratio is 52.49%.

Insider Buying and Selling

In other Cummins news, SVP Tony Satterthwaite sold 24,250 shares of the stock in a transaction that occurred on Friday, August 23rd. The stock was 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 in the company, valued at approximately $23,870,722.08. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other news, 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 owns 77,442 shares of the company’s stock, valued at $23,870,722.08. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Sharon R. Barner sold 4,780 shares of the company’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $300.35, for a total value of $1,435,673.00. Following the transaction, the vice president now directly owns 20,873 shares in the company, valued at approximately $6,269,205.55. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.56% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. CarsonAllaria Wealth Management Ltd. bought a new position in Cummins in the 2nd quarter valued at $28,000. Cultivar Capital Inc. purchased a new stake in shares of Cummins during the 2nd quarter valued at $28,000. Lynx Investment Advisory purchased a new stake in shares of Cummins during the 2nd quarter valued at $29,000. LRI Investments LLC purchased a new stake in shares of Cummins during the 1st quarter valued at $31,000. Finally, Kathleen S. Wright Associates Inc. purchased a new stake in shares of Cummins during the 3rd quarter valued at $34,000. 83.46% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CMI. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $285.00 to $340.00 and gave the company an “underweight” rating in a report on Friday, October 11th. Evercore ISI increased their price objective on Cummins from $290.00 to $294.00 and gave the stock an “in-line” rating in a research note on Monday, August 19th. Citigroup upped their price target on Cummins from $345.00 to $375.00 and gave the stock a “buy” rating in a report on Wednesday, October 9th. Barclays raised their price objective on Cummins from $259.00 to $310.00 and gave the company an “equal weight” rating in a research note on Monday, August 5th. Finally, Robert W. Baird upped their target price on shares of Cummins from $295.00 to $315.00 and gave the stock a “neutral” rating in a research note on Friday, August 2nd. Two analysts have rated the stock with a sell rating, six have issued a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $311.55.

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.