Traders Purchase Large Volume of Put Options on Cummins (CMI)

Cummins Inc. (NYSE:CMI) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 14,738 put options on the company. This represents an increase of 1,106% compared to the typical volume of 1,222 put options.

Cummins (NYSE:CMI) opened at $164.05 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.57 and a debt-to-equity ratio of 0.19. The stock has a market cap of $27,230.00, a P/E ratio of 27.62, a P/E/G ratio of 1.17 and a beta of 1.14. Cummins has a 1-year low of $143.83 and a 1-year high of $194.18.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, February 6th. The company reported $3.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.65 by $0.38. Cummins had a net margin of 4.89% and a return on equity of 22.18%. The company had revenue of $5.48 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same quarter last year, the firm posted $2.25 earnings per share. The firm’s revenue was up 21.6% compared to the same quarter last year. analysts expect that Cummins will post 11.94 EPS for the current year.

CMI has been the subject of a number of analyst reports. Buckingham Research raised their price objective on shares of Cummins from $180.00 to $195.00 and gave the company a “buy” rating in a research note on Wednesday, November 1st. Argus lifted their price target on shares of Cummins from $172.00 to $195.00 and gave the stock a “buy” rating in a research note on Monday, November 6th. Bank of America upgraded shares of Cummins from a “neutral” rating to a “buy” rating and set a $215.00 price target for the company in a research note on Friday, January 19th. ValuEngine upgraded shares of Cummins from a “hold” rating to a “buy” rating in a research note on Friday, February 2nd. Finally, Zacks Investment Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $193.00 price target for the company in a research note on Friday. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have given a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $188.18.

A number of large investors have recently modified their holdings of CMI. Boston Partners purchased a new position in Cummins during the third quarter valued at approximately $416,229,000. BlackRock Inc. lifted its holdings in Cummins by 8.3% during the fourth quarter. BlackRock Inc. now owns 11,675,250 shares of the company’s stock valued at $2,062,319,000 after purchasing an additional 898,512 shares in the last quarter. Old Mutual Global Investors UK Ltd. lifted its holdings in Cummins by 203.7% during the third quarter. Old Mutual Global Investors UK Ltd. now owns 926,242 shares of the company’s stock valued at $155,636,000 after purchasing an additional 621,292 shares in the last quarter. UBS Asset Management Americas Inc. lifted its holdings in Cummins by 107.0% during the fourth quarter. UBS Asset Management Americas Inc. now owns 1,186,164 shares of the company’s stock valued at $209,524,000 after purchasing an additional 613,102 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Cummins by 272.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 639,800 shares of the company’s stock valued at $113,014,000 after purchasing an additional 468,200 shares in the last quarter. 82.46% of the stock is currently owned by institutional investors and hedge funds.

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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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