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

Cummins Inc. (NYSE:CMI) saw a large increase in short interest during the month of November. As of November 30th, there was short interest totalling 1,710,000 shares, an increase of 6.9% from the November 15th total of 1,600,000 shares. Based on an average daily trading volume, of 628,100 shares, the short-interest ratio is currently 2.7 days. Currently, 1.3% of the company’s stock are short sold.

Cummins Stock Performance

Shares of NYSE:CMI traded down $5.72 on Tuesday, hitting $361.25. The company’s stock had a trading volume of 623,253 shares, compared to its average volume of 1,406,380. Cummins has a 12 month low of $226.52 and a 12 month high of $387.90. The stock’s 50-day moving average is $354.53 and its two-hundred day moving average is $315.12. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.79 and a current ratio of 1.32. The company has a market capitalization of $49.56 billion, a price-to-earnings ratio of 23.86, a price-to-earnings-growth ratio of 1.80 and a beta of 0.99.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, November 5th. The company reported $5.86 earnings per share for the quarter, topping analysts’ consensus estimates of $4.89 by $0.97. Cummins had a return on equity of 26.86% and a net margin of 6.13%. The firm had revenue of $8.46 billion during the quarter, compared to the consensus estimate of $8.29 billion. During the same period in the prior year, the firm posted $4.73 earnings per share. The firm’s revenue for the quarter was up .3% compared to the same quarter last year. On average, equities research analysts forecast that Cummins will post 20.75 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 5th. Shareholders of record on Friday, November 22nd were paid a dividend of $1.82 per share. This represents a $7.28 dividend on an annualized basis and a yield of 2.02%. The ex-dividend date of this dividend was Friday, November 22nd. Cummins’s dividend payout ratio is presently 48.08%.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Robert W. Baird increased their price objective on shares of Cummins from $330.00 to $372.00 and gave the company a “neutral” rating in a research note on Wednesday, November 6th. StockNews.com raised shares of Cummins from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, November 6th. Jefferies Financial Group boosted their price objective on Cummins from $410.00 to $435.00 and gave the company a “buy” rating in a report on Friday, December 6th. Truist Financial increased their target price on Cummins from $349.00 to $371.00 and gave the stock a “hold” rating in a report on Wednesday, October 9th. Finally, Citigroup boosted their price target on Cummins from $415.00 to $435.00 and gave the company a “buy” rating in a report on Monday, December 9th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $352.85.

Insider Buying and Selling at Cummins

In other news, VP Sharon R. Barner sold 162 shares of the stock in a transaction that occurred on Friday, November 8th. The stock was sold at an average price of $357.04, for a total transaction of $57,840.48. Following the completion of the transaction, the vice president now directly owns 20,803 shares in the company, valued at approximately $7,427,503.12. This represents a 0.77 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 6,489 shares of company stock valued at $2,357,531 in the last ninety days. Insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Cummins

Several institutional investors and hedge funds have recently added to or reduced their stakes in CMI. Envestnet Portfolio Solutions Inc. increased its stake in Cummins by 2.4% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 5,863 shares of the company’s stock valued at $1,624,000 after buying an additional 140 shares during the period. Blue Trust Inc. increased its stake in shares of Cummins by 26.4% in the second quarter. Blue Trust Inc. now owns 1,253 shares of the company’s stock worth $369,000 after acquiring an additional 262 shares during the last quarter. Gradient Investments LLC raised its holdings in shares of Cummins by 290.0% during the second quarter. Gradient Investments LLC now owns 156 shares of the company’s stock worth $43,000 after acquiring an additional 116 shares in the last quarter. Zhang Financial LLC boosted its position in Cummins by 8.0% during the second quarter. Zhang Financial LLC now owns 967 shares of the company’s stock valued at $268,000 after purchasing an additional 72 shares during the last quarter. Finally, Apollon Wealth Management LLC grew its stake in Cummins by 11.0% in the second quarter. Apollon Wealth Management LLC now owns 11,112 shares of the company’s stock valued at $3,077,000 after purchasing an additional 1,102 shares in the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

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.