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

Cummins Inc. (NYSE:CMI) saw a significant increase in short interest in the month of March. As of March 15th, there was short interest totalling 32,500,000 shares, an increase of 456.5% from the February 29th total of 5,840,000 shares. Based on an average daily trading volume, of 3,080,000 shares, the days-to-cover ratio is presently 10.6 days. Approximately 23.3% of the company’s stock are short sold.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on CMI shares. Evercore ISI boosted their target price on Cummins from $231.00 to $244.00 and gave the stock an “in-line” rating in a research note on Tuesday, February 20th. Citigroup lifted their target price on shares of Cummins from $265.00 to $285.00 and gave the stock a “buy” rating in a research note on Monday, February 12th. TD Cowen upped their price target on shares of Cummins from $260.00 to $272.00 and gave the company an “outperform” rating in a research note on Wednesday, February 7th. Truist Financial began coverage on shares of Cummins in a research note on Thursday, March 14th. They set a “hold” rating and a $303.00 price objective for the company. Finally, StockNews.com downgraded Cummins from a “buy” rating to a “hold” rating in a research report on Monday, March 4th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $271.64.

Insider Activity at Cummins

In other Cummins news, CEO Jennifer Rumsey sold 739 shares of the company’s stock in a transaction on Friday, February 16th. The stock was sold at an average price of $266.91, for a total transaction of $197,246.49. Following the completion of the sale, the chief executive officer now owns 2,698 shares in the company, valued at $720,123.18. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In other Cummins news, CEO Jennifer Rumsey sold 739 shares of the business’s stock in a transaction dated Friday, February 16th. The shares were sold at an average price of $266.91, for a total value of $197,246.49. Following the completion of the transaction, the chief executive officer now directly owns 2,698 shares in the company, valued at $720,123.18. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Sharon R. Barner sold 11,000 shares of the firm’s stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $262.16, for a total transaction of $2,883,760.00. Following the completion of the sale, the vice president now owns 17,874 shares in the company, valued at $4,685,847.84. The disclosure for this sale can be found here. Insiders have sold a total of 51,289 shares of company stock valued at $13,576,838 over the last ninety days. 1.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cummins

Hedge funds have recently modified their holdings of the company. Synovus Financial Corp raised its holdings in Cummins by 254.4% in the 1st quarter. Synovus Financial Corp now owns 6,099 shares of the company’s stock worth $1,242,000 after purchasing an additional 4,378 shares during the period. Cibc World Market Inc. grew its holdings in Cummins by 65.4% in the first quarter. Cibc World Market Inc. now owns 18,194 shares of the company’s stock valued at $3,732,000 after purchasing an additional 7,191 shares during the period. Sei Investments Co. increased its position in shares of Cummins by 16.1% in the first quarter. Sei Investments Co. now owns 94,391 shares of the company’s stock valued at $19,282,000 after buying an additional 13,058 shares in the last quarter. Prudential PLC acquired a new position in shares of Cummins during the 1st quarter worth approximately $711,000. Finally, Cetera Investment Advisers lifted its position in shares of Cummins by 43.0% during the 1st quarter. Cetera Investment Advisers now owns 6,403 shares of the company’s stock valued at $1,313,000 after buying an additional 1,925 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Down 0.0 %

Shares of CMI opened at $294.61 on Friday. The stock’s 50-day moving average price is $261.54 and its 200-day moving average price is $240.87. The company has a quick ratio of 0.74, a current ratio of 1.18 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $41.79 billion, a price-to-earnings ratio of 56.87, a PEG ratio of 2.00 and a beta of 1.03. Cummins has a 52 week low of $203.18 and a 52 week high of $297.11.

Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, February 6th. The company reported $4.14 EPS for the quarter, missing the consensus estimate of $4.41 by ($0.27). The company had revenue of $8.54 billion during the quarter, compared to analysts’ expectations of $8.10 billion. Cummins had a return on equity of 25.68% and a net margin of 2.16%. The company’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.52 EPS. On average, sell-side analysts predict that Cummins will post 18.36 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were issued a $1.68 dividend. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $6.72 dividend on an annualized basis and a yield of 2.28%. Cummins’s payout ratio is 129.73%.

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.