Cummins Inc. (NYSE:CMI) Short Interest Down 7.7% in October

Cummins Inc. (NYSE:CMI) saw a large 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. Based on an average daily volume of 687,200 shares, the days-to-cover ratio is currently 3.1 days. Currently, 1.6% of the company’s shares are sold short.

Analyst Ratings Changes

A number of brokerages have commented on CMI. Evercore ISI lifted their price target on Cummins from $290.00 to $294.00 and gave the stock an “in-line” rating in a research report on Monday, August 19th. Truist Financial increased their price target on shares of Cummins from $349.00 to $371.00 and gave the stock a “hold” rating in a report on Wednesday, October 9th. JPMorgan Chase & Co. upped 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. Robert W. Baird increased their price objective 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. Finally, Barclays boosted their target price on shares of Cummins from $259.00 to $310.00 and gave the company an “equal weight” rating in a research report on Monday, August 5th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $311.55.

Cummins Price Performance

CMI stock traded down $2.72 during mid-day trading on Thursday, reaching $329.12. The company’s stock had a trading volume of 642,361 shares, compared to its average volume of 1,520,056. The stock has a market cap of $45.02 billion, a PE ratio of 24.09, a P/E/G ratio of 1.92 and a beta of 0.98. The company’s 50 day moving average is $318.55 and its two-hundred day moving average is $296.87. Cummins has a fifty-two week low of $212.80 and a fifty-two week high of $340.82. The company has a current ratio of 1.34, a quick ratio of 0.82 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last released its quarterly earnings data on Thursday, August 1st. The company reported $5.26 EPS for the quarter, beating analysts’ consensus estimates of $4.85 by $0.41. Cummins had a return on equity of 25.73% and a net margin of 5.69%. The firm had revenue of $8.80 billion for the quarter, compared to analysts’ expectations of $8.33 billion. During the same period in the prior year, the firm posted $5.18 earnings per share. The firm’s quarterly revenue was up 2.3% on a year-over-year basis. Equities research analysts expect that Cummins will post 19.77 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 5th. Stockholders of record on Friday, November 22nd will be given a dividend of $1.82 per share. The ex-dividend date is Friday, November 22nd. This represents a $7.28 annualized dividend and a dividend yield of 2.21%. Cummins’s dividend payout ratio (DPR) is currently 53.29%.

Insiders Place Their Bets

In other Cummins news, VP Sharon R. Barner sold 4,780 shares of the company’s stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $300.35, for a total transaction of $1,435,673.00. Following the completion of the sale, the vice president now owns 20,873 shares in the company, valued at $6,269,205.55. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, SVP Tony Satterthwaite sold 24,250 shares of the stock in a transaction 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 completion of the sale, the senior vice president now owns 77,442 shares in the company, valued at approximately $23,870,722.08. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Sharon R. Barner sold 4,780 shares of the business’s stock in a transaction 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 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 company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Sumitomo Mitsui Trust Holdings Inc. lifted its stake in Cummins by 0.5% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 410,647 shares of the company’s stock valued at $120,997,000 after buying an additional 2,041 shares during the last quarter. Azzad Asset Management Inc. ADV boosted its stake in Cummins by 13.3% during the 1st quarter. Azzad Asset Management Inc. ADV now owns 9,296 shares of the company’s stock worth $2,739,000 after purchasing an additional 1,088 shares during the period. Norden Group LLC acquired a new stake in Cummins during the 1st quarter worth $1,436,000. Massachusetts Wealth Management grew its position in Cummins by 7.5% during the 1st quarter. Massachusetts Wealth Management now owns 4,787 shares of the company’s stock worth $1,410,000 after purchasing an additional 335 shares during the last quarter. Finally, First Trust Direct Indexing L.P. increased its stake in Cummins by 11.6% in the first quarter. First Trust Direct Indexing L.P. now owns 4,474 shares of the company’s stock valued at $1,318,000 after purchasing an additional 464 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

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.