Today Cummins Inc. Had High Bearish Options Activity

 Today Cummins Inc. Had High Bearish Options Activity

In today’s session Cummins Inc. (CMI) recorded an unusually high (423) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious CMI decrease. With 423 contracts traded and 4724 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: CMI161118P00120000 closed last at: $2.8 or 5.1% down. About 188,336 shares traded hands. Cummins Inc. (NYSE:CMI) has risen 19.43% since March 16, 2016 and is uptrending. It has outperformed by 13.89% 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 $328.68 million for 16.57 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 21 analysts covering Cummins (NYSE:CMI), 4 rate it a “Buy”, 4 “Sell”, while 13 “Hold”. This means 19% are positive. $162 is the highest target while $79 is the lowest. The $110.44 average target is -13.64% below today’s ($127.89) stock price. Cummins has been the topic of 47 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The stock of Cummins Inc. (NYSE:CMI) has “Neutral” rating given on Monday, April 11 by Macquarie Research. The stock of Cummins Inc. (NYSE:CMI) earned “Outperform” rating by Macquarie Research on Friday, February 5. Deutsche Bank maintained the shares of CMI in a report on Thursday, December 17 with “Hold” rating. As per Wednesday, October 28, the company rating was maintained by Argus Research. The stock has “Underperform” rating given by Bank of America on Tuesday, December 1. The stock of Cummins Inc. (NYSE:CMI) has “Sell” rating given on Wednesday, October 12 by Deutsche Bank. UBS downgraded it to “Neutral” rating and $111 target price in Tuesday, October 20 report. The firm has “Neutral” rating by Citigroup given on Friday, May 13. BB&T Capital downgraded the shares of CMI in a report on Monday, September 28 to “Hold” rating. The stock has “Neutral” rating given by Bank of America on Monday, April 18.

According to Zacks Investment Research, “Cummins Inc. is one of the leading worldwide designers and manufacturers of diesel engines. The company also produces natural gas engines and engine components and subsystems. Cummins provides power and components for a wide variety of equipment in its key businesses: engine, power generation, and filtration.”

Insitutional Activity: The institutional sentiment decreased to 0.95 in 2016 Q2. Its down 0.12, from 1.07 in 2016Q1. The ratio dropped, 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.
Reliance Communication Of Delaware owns 3,816 shares or 0.03% of their US portfolio. Goelzer Investment Management has 0.03% invested in the company for 2,220 shares. Tocqueville Asset Mngmt Lp reported 1,957 shares or 0% of all its holdings. Exxonmobil Inv Mngmt Inc Tx has 0.1% invested in the company for 41,011 shares. Baldwin Brothers Incorporated Ma has 498 shares for 0.01% of their US portfolio. First accumulated 0.21% or 12,135 shares. The New York-based Rockefeller has invested 0% in Cummins Inc. (NYSE:CMI). Wealthtrust accumulated 0.04% or 523 shares. Franklin last reported 194,555 shares in the company. New York State Common Retirement Fund accumulated 515,900 shares or 0.08% of the stock. Stifel Fincl Corp last reported 0.05% of its portfolio in the stock. Lenox Wealth Mgmt accumulated 181 shares or 0.01% of the stock. Amer Interest Group has 0% invested in the company for 3.49 million shares. Carl Domino reported 17,485 shares or 1.84% of all its holdings. Dreman Value Management L L C holds 6,573 shares or 0.46% of its portfolio.

Insider Transactions: Since May 12, 2016, the stock had 0 insider buys, and 14 insider sales for $4.72 million net activity. $97,368 worth of Cummins Inc. (NYSE:CMI) was sold by ROSE MARYA M on Thursday, May 12. Freeland Richard Joseph sold $312,500 worth of stock or 2,500 shares. $568,845 worth of Cummins Inc. (NYSE:CMI) was sold by Talaulicar Anant on Wednesday, May 25. Another trade for 820 shares valued at $104,099 was made by Ewald Thaddeus B on Thursday, August 11. The insider Cook Jill E sold 5,981 shares worth $718,916. HERMAN ALEXIS M sold 1,086 shares worth $123,446. 5,000 shares were sold by Ward Pat, worth $637,500.

Cummins Inc. is a manufacturer of diesel engines. The company has a market cap of $21.78 billion. The Firm operates through four divisions: Engine, Distribution, Components and Power Generation. It has a 17.45 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.

CMI Company Profile

Cummins Inc., incorporated on February 3, 1919, is a maker of diesel engines. The Firm designs, makes, distributes and services diesel and natural gas engines and engine-related component products, including filtration, after treatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. The Firm operates through four divisions: Engine, Distribution, Components and Power Generation. The Firm sells its products to original equipment manufacturers (OEMs), distributors and other clients across the world. The Firm serves its clients through a network of approximately 600 Company-owned and independent distributor locations and approximately 7,200 dealer locations in over 190 countries and territories. It has presence in the United States, China, India, South Korea, Mexico and Sweden.

More recent Cummins Inc. (NYSE:CMI) news were published by: Seekingalpha.com which released: “Cummins: Safety, Solidity, Growth In Hard Assets” on October 19, 2016. Also Seekingalpha.com published the news titled: “Cummins Inc: A Strong Reputation Gives Rise To Opportunities” on October 04, 2016. Reuters.com‘s news article titled: “Fiat Chrysler, Cummins spar over costs of diesel emission recall” with publication date: October 10, 2016 was also an interesting one.

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