Cummins Sees Unusually High Options Volume (NYSE:CMI)

Cummins Inc. (NYSE:CMI) saw unusually large options trading on Wednesday. Stock investors purchased 144 call options on the company. This represents an increase of approximately 136% compared to the average daily volume of 61 call options.

CMI has been the subject of several recent analyst reports. Wells Fargo & Company upgraded Cummins from a “market perform” rating to an “outperform” rating in a research note on Monday, April 17th. Credit Suisse Group set a $173.00 price target on Cummins and gave the company a “buy” rating in a research note on Monday, March 27th. Piper Jaffray Companies cut Cummins from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $160.00 to $144.00 in a report on Tuesday, April 18th. Deutsche Bank AG lifted their price objective on Cummins from $139.00 to $142.00 and gave the stock a “sell” rating in a report on Thursday, April 6th. Finally, Royal Bank Of Canada reiterated a “hold” rating and issued a $140.00 price objective on shares of Cummins in a report on Wednesday, March 22nd. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and seven have issued a buy rating to the company. Cummins has an average rating of “Hold” and an average target price of $150.78.

In other Cummins news, insider Tony Satterthwaite sold 4,000 shares of Cummins stock in a transaction dated Friday, April 28th. The stock was sold at an average price of $151.03, for a total transaction of $604,120.00. Following the completion of the transaction, the insider now owns 41,902 shares in the company, valued at approximately $6,328,459.06. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Richard Joseph Freeland sold 22,550 shares of Cummins stock in a transaction dated Thursday, July 6th. The shares were sold at an average price of $165.00, for a total value of $3,720,750.00. Following the transaction, the chief operating officer now owns 14,131 shares of the company’s stock, valued at approximately $2,331,615. The disclosure for this sale can be found here. Insiders sold a total of 79,176 shares of company stock valued at $12,900,695 in the last 90 days. 0.62% of the stock is currently owned by company insiders.

A number of hedge funds have recently made changes to their positions in the company. Johanson Financial Advisors Inc. raised its stake in shares of Cummins by 0.4% in the second quarter. Johanson Financial Advisors Inc. now owns 1,843 shares of the company’s stock worth $303,000 after buying an additional 7 shares during the period. Cordasco Financial Network raised its stake in shares of Cummins by 0.6% in the first quarter. Cordasco Financial Network now owns 1,409 shares of the company’s stock worth $213,000 after buying an additional 9 shares during the period. Alambic Investment Management L.P. raised its stake in shares of Cummins by 0.7% in the first quarter. Alambic Investment Management L.P. now owns 2,416 shares of the company’s stock worth $365,000 after buying an additional 16 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Cummins by 2.1% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,496 shares of the company’s stock worth $226,000 after buying an additional 31 shares during the period. Finally, Community Bank N.A. raised its stake in shares of Cummins by 0.3% in the first quarter. Community Bank N.A. now owns 12,359 shares of the company’s stock worth $1,869,000 after buying an additional 35 shares during the period. Hedge funds and other institutional investors own 79.95% of the company’s stock.

Shares of Cummins (NYSE:CMI) opened at 166.14 on Tuesday. Cummins has a 52-week low of $116.02 and a 52-week high of $167.17. The stock has a market cap of $27.80 billion, a price-to-earnings ratio of 19.05 and a beta of 1.08. The stock’s 50 day moving average is $158.15 and its 200 day moving average is $150.20.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, May 2nd. The company reported $2.36 EPS for the quarter, beating the consensus estimate of $1.81 by $0.55. The business had revenue of $4.59 billion for the quarter, compared to analyst estimates of $4.15 billion. Cummins had a net margin of 8.25% and a return on equity of 20.87%. The company’s quarterly revenue was up 6.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.87 earnings per share. On average, equities analysts expect that Cummins will post $7.98 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, September 1st. Investors of record on Friday, August 18th will be given a dividend of $1.08 per share. The ex-dividend date of this dividend is Wednesday, August 16th. This represents a $4.32 dividend on an annualized basis and a yield of 2.60%. This is a positive change from Cummins’s previous quarterly dividend of $1.03. Cummins’s dividend payout ratio (DPR) is 46.96%.

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Cummins Company Profile

Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company’s segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.

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