Cummins Sees Unusually Large Options Volume (NYSE:CMI)

Cummins Inc. (NYSE:CMIGet Free Report) was the recipient of unusually large options trading activity on Thursday. Traders purchased 122,059 put options on the stock. This is an increase of 1,299% compared to the typical daily volume of 8,722 put options.

Insiders Place Their Bets

In other Cummins news, SVP Tony Satterthwaite sold 37,450 shares of the company’s stock in a transaction on Wednesday, February 21st. The shares were sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the sale, the senior vice president now directly owns 73,741 shares of the company’s stock, valued at $19,545,052.05. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, VP Sharon R. Barner sold 11,000 shares of the stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $262.16, for a total value of $2,883,760.00. Following the transaction, the vice president now directly owns 17,874 shares of the company’s stock, valued at $4,685,847.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Tony Satterthwaite sold 37,450 shares of the company’s stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the completion of the transaction, the senior vice president now owns 73,741 shares in the company, valued at $19,545,052.05. The disclosure for this sale can be found here. Over the last three months, insiders have sold 51,289 shares of company stock valued at $13,576,838. 1.12% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CMI. First United Bank & Trust acquired a new stake in shares of Cummins during the 4th quarter worth approximately $25,000. Private Wealth Management Group LLC acquired a new stake in shares of Cummins during the 4th quarter worth approximately $26,000. OFI Invest Asset Management acquired a new stake in shares of Cummins during the 3rd quarter worth approximately $25,000. Silver Oak Securities Incorporated acquired a new stake in shares of Cummins during the 3rd quarter worth approximately $28,000. Finally, Tyler Stone Wealth Management acquired a new stake in shares of Cummins during the 2nd quarter worth approximately $30,000. Institutional investors own 81.81% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Citigroup upped their price target on shares of Cummins from $265.00 to $285.00 and gave the company a “buy” rating in a research note on Monday, February 12th. Evercore ISI upped their price target on shares of Cummins from $231.00 to $244.00 and gave the company an “in-line” rating in a research note on Tuesday, February 20th. StockNews.com downgraded shares of Cummins from a “buy” rating to a “hold” rating in a research note on Monday, March 4th. TD Cowen increased their price objective on shares of Cummins from $260.00 to $272.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 7th. Finally, TheStreet downgraded shares of Cummins from an “a-” rating to a “c+” rating in a research note on Tuesday, February 6th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Cummins presently has a consensus rating of “Hold” and an average target price of $263.70.

Get Our Latest Stock Analysis on Cummins

Cummins Stock Up 4.3 %

Cummins stock opened at $274.84 on Friday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.74 and a current ratio of 1.18. Cummins has a 52-week low of $203.18 and a 52-week high of $276.92. The firm has a 50 day moving average price of $253.33 and a two-hundred day moving average price of $237.74. The firm has a market cap of $38.99 billion, a price-to-earnings ratio of 53.06, a PEG ratio of 1.83 and a beta of 1.03.

Cummins (NYSE:CMIGet Free Report) last released its quarterly earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a return on equity of 25.68% and a net margin of 2.16%. The firm had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.10 billion. During the same quarter in the previous year, the business posted $4.52 EPS. The firm’s revenue for the quarter was up 9.9% compared to the same quarter last year. Equities analysts predict that Cummins will post 18.38 EPS for the current year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were issued a dividend of $1.68 per share. The ex-dividend date was Thursday, February 22nd. This represents a $6.72 annualized dividend and a yield of 2.45%. Cummins’s payout ratio is 129.73%.

About Cummins

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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.

Further Reading

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