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

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

Cummins Trading Up 1.7 %

NYSE:CMI traded up $4.58 during midday trading on Wednesday, hitting $272.13. The stock had a trading volume of 504,655 shares, compared to its average volume of 2,060,036. The company has a quick ratio of 0.84, a current ratio of 1.34 and a debt-to-equity ratio of 0.57. The stock has a 50-day moving average of $281.44 and a 200 day moving average of $269.48. The company has a market capitalization of $37.22 billion, a price-to-earnings ratio of 19.92, a PEG ratio of 1.73 and a beta of 0.99. Cummins has a one year low of $212.80 and a one year high of $304.24.

Cummins (NYSE:CMI) last released its quarterly earnings data 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). Cummins had a net margin of 5.70% and a return on equity of 25.38%. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.36 billion. As a group, sell-side analysts forecast that Cummins will post 18.86 EPS for the current year.

Cummins Announces Dividend

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

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CMI. Truist Financial decreased their target price on shares of Cummins from $319.00 to $315.00 and set a “hold” rating on the stock in a research report on Tuesday. TD Cowen boosted their target price on Cummins from $272.00 to $292.00 and gave the company a “buy” rating in a research report on Friday, May 10th. Robert W. Baird lowered their price target on Cummins from $298.00 to $295.00 and set a “neutral” rating for the company in a research report on Friday, May 3rd. The Goldman Sachs Group increased their target price 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. Finally, UBS Group raised shares of Cummins from a “neutral” rating to a “buy” rating and lifted their price target for the stock 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, five have issued a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $287.18.

Insiders Place Their Bets

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

Institutional Trading of Cummins

Hedge funds and other institutional investors have recently bought and sold shares of the stock. First United Bank & Trust purchased a new stake in shares of Cummins during the 4th quarter worth $25,000. LRI Investments LLC bought a new position in Cummins in the first quarter worth about $31,000. Private Wealth Management Group LLC bought a new position in Cummins in the fourth quarter worth about $26,000. JNBA Financial Advisors lifted its position in shares of Cummins by 1,111.1% during the first quarter. JNBA Financial Advisors now owns 109 shares of the company’s stock valued at $32,000 after buying an additional 100 shares during the last quarter. Finally, Silver Oak Securities Incorporated bought a new stake in shares of Cummins in the 3rd quarter valued at about $28,000. Institutional investors own 83.46% of the company’s stock.

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.