Cummins Inc. Can’t Burn Your Long Portfolio. Option Traders are Bullish


 Cummins Inc. Can't Burn Your Long Portfolio. Option Traders are Bullish

In today’s session Cummins Inc. (CMI) registered an unusually high (369) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious CMI increase. With 369 contracts traded and 634 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: CMI161021C00127000 closed last at: $3.5 or 118.8% up. The stock decreased 0.44% or $0.56 during the last trading session, hitting $127.31. About 1.10 million shares traded hands. Cummins Inc. (NYSE:CMI) has risen 27.53% since March 1, 2016 and is uptrending. It has outperformed by 18.29% the S&P500.

Analysts await Cummins Inc. (NYSE:CMI) to report earnings on October, 25. They expect $1.93 earnings per share, down 9.81% or $0.21 from last year’s $2.14 per share. CMI’s profit will be $324.72M for 16.49 P/E if the $1.93 EPS becomes a reality. After $2.40 actual earnings per share reported by Cummins Inc. for the previous quarter, Wall Street now forecasts -19.58% negative EPS growth.

Cummins Inc. (NYSE:CMI) Ratings Coverage

Out of 19 analysts covering Cummins (NYSE:CMI), 3 rate it a “Buy”, 3 “Sell”, while 13 “Hold”. This means 16% are positive. Cummins has been the topic of 44 analyst reports since July 22, 2015 according to StockzIntelligence Inc. Macquarie Research maintained the shares of CMI in a report on Friday, February 5 with “Outperform” rating. The stock of Cummins Inc. (NYSE:CMI) has “Neutral” rating given on Monday, April 18 by Bank of America. Morgan Stanley downgraded the stock to “Underweight” rating in Wednesday, October 28 report. The rating was downgraded by Citigroup on Monday, January 25 to “Neutral”. The rating was downgraded by BB&T Capital to “Hold” on Monday, September 28. On Wednesday, November 11 the stock rating was maintained by Deutsche Bank with “Hold”. The company was maintained on Wednesday, October 28 by Macquarie Research. The firm earned “Sector Perform” rating on Tuesday, March 15 by RBC Capital Markets. Argus Research maintained Cummins Inc. (NYSE:CMI) rating on Wednesday, October 28. Argus Research has “Buy” rating and $120 price target. Standpoint Research upgraded the shares of CMI in a report on Monday, August 24 to “Buy” rating.

Insitutional Activity: The institutional sentiment decreased to 0.95 in 2016 Q2. Its down 0.12, from 1.07 in 2016Q1. The ratio fall, as 75 funds sold all Cummins Inc. shares owned while 250 reduced positions. 62 funds bought stakes while 246 increased positions. They now own 134.04 million shares or 12.52% less from 153.23 million shares in 2016Q1.
Alethea Cap Mgmt Limited Liability Co last reported 0.46% of its portfolio in the stock. Moreover, Raub Brock L P has 3.9% invested in Cummins Inc. (NYSE:CMI) for 115,533 shares. Murphy Pohlad Asset Mngmt Ltd Liability, a Minnesota-based fund reported 14,860 shares. State Street accumulated 12.23M shares or 0.15% of the stock. Stonebridge Capital reported 18,456 shares or 0.7% of all its holdings. Jolley Asset Management Ltd Company has 498 shares for 0.05% of their US portfolio. Macquarie Limited has invested 0.01% of its portfolio in Cummins Inc. (NYSE:CMI). Gargoyle Advisor Ltd Liability owns 15,464 shares or 0.65% of their US portfolio. Chevy Chase Tru owns 135,972 shares or 0.09% of their US portfolio. Ltd Liability Corp has 0.18% invested in the company for 16,663 shares. Tiemann Invest Ltd Llc has 2,466 shares for 0.26% of their US portfolio. Anderson Hoagland has 5,250 shares for 0.36% of their US portfolio. Millennium Ltd Liability last reported 10,075 shares in the company. Srb Corp holds 0.02% of its portfolio in Cummins Inc. (NYSE:CMI) for 1,297 shares. Raymond James Financial Serv Inc accumulated 106,696 shares or 0.12% of the stock.

Insider Transactions: Since April 18, 2016, the stock had 0 insider buys, and 15 sales for $5.30 million net activity. On Tuesday, May 17 the insider ROSE MARYA M sold $98,446. On Monday, April 18 the insider Ward Pat sold $582,315. Shares for $312,500 were sold by Freeland Richard Joseph on Friday, August 5. CHAPMAN STEVEN M sold 3,000 shares worth $375,000. Shares for $718,916 were sold by Cook Jill E. On Thursday, May 26 HERMAN ALEXIS M sold $123,446 worth of the stock or 1,086 shares. HUNT MARSHA L sold $63,132 worth of Cummins Inc. (NYSE:CMI) on Monday, August 8.

Cummins Inc. is a manufacturer of diesel engines. The company has a market cap of $21.42 billion. The Firm operates through four divisions: Engine, Distribution, Components and Power Generation. It has a 17.38 P/E ratio. The Company’s Engine segment makes 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 , light-duty automotive, agricultural and governmental equipment markets.

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