Could Cummins Inc. Change Direction After Today’s Bearish Options Activity?

 Could Cummins Inc. Change Direction After Today's Bearish Options Activity?

In today’s session Cummins Inc. (CMI) recorded an unusually high (532) 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 532 contracts traded and 7854 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: CMI161118P00125000 closed last at: $3.9 or 5.4% up. About 560,300 shares traded hands. Cummins Inc. (NYSE:CMI) has risen 15.18% since March 29, 2016 and is uptrending. It has outperformed by 11.71% the S&P500.

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 -13.46% below today’s ($127.61) stock price. Cummins has been the topic of 47 analyst reports since July 22, 2015 according to StockzIntelligence Inc. Deutsche Bank maintained the stock with “Sell” rating in Wednesday, October 12 report. Macquarie Research maintained the stock with “Outperform” rating in Friday, February 5 report. The stock of Cummins Inc. (NYSE:CMI) earned “Sector Perform” rating by RBC Capital Markets on Tuesday, March 15. The stock of Cummins Inc. (NYSE:CMI) has “Market Perform” rating given on Tuesday, October 6 by BMO Capital Markets. The firm has “Hold” rating by Deutsche Bank given on Tuesday, September 22. The rating was initiated by Barclays Capital with “Underweight” on Friday, September 25. The stock of Cummins Inc. (NYSE:CMI) has “Neutral” rating given on Tuesday, October 20 by UBS. As per Wednesday, October 28, the company rating was downgraded by Robert W. Baird. As per Tuesday, August 4, the company rating was downgraded by Evercore. The rating was downgraded by Macquarie Research to “Neutral” on Monday, April 11.

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 Q2 2016. Its down 0.12, from 1.07 in 2016Q1. The ratio dived, 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.
Amp Cap holds 0.09% or 124,910 shares in its portfolio. Waverton Mgmt holds 0.09% or 11,078 shares in its portfolio. Nationwide Fund holds 140,102 shares or 0.07% of its portfolio. Arrow Financial has invested 0.56% of its portfolio in Cummins Inc. (NYSE:CMI). First Republic Mngmt Incorporated last reported 56,341 shares in the company. Fairfield Bush And holds 0.19% of its portfolio in Cummins Inc. (NYSE:CMI) for 5,000 shares. Kings Point Capital Mngmt has invested 0.03% of its portfolio in Cummins Inc. (NYSE:CMI). The Quebec – Canada-based Caisse De Depot Et Placement Du Quebec has invested 0.03% in Cummins Inc. (NYSE:CMI). State Board Of Administration Of Florida Retirement last reported 236,827 shares in the company. Argi Investment Service Ltd, a Kentucky-based fund reported 21,420 shares. Sigma Planning Corp owns 2,352 shares or 0.03% of their US portfolio. Spinnaker Trust last reported 0.04% of its portfolio in the stock. Benjamin F Edwards, a Missouri-based fund reported 4,492 shares. Grantham Mayo Van Otterloo Communication Limited Co has invested 0% of its portfolio in Cummins Inc. (NYSE:CMI). Huntington Bank holds 0.01% of its portfolio in Cummins Inc. (NYSE:CMI) for 3,410 shares.

Insider Transactions: Since May 12, 2016, the stock had 0 buys, and 14 sales for $4.72 million net activity. 820 Cummins Inc. (NYSE:CMI) shares with value of $104,099 were sold by Ewald Thaddeus B. Shares for $375,000 were sold by CHAPMAN STEVEN M on Friday, August 5. Padmanabhan Srikanth sold $164,677 worth of Cummins Inc. (NYSE:CMI) on Wednesday, May 18. Cook Jill E also sold $718,916 worth of Cummins Inc. (NYSE:CMI) shares. HERMAN ALEXIS M also sold $123,446 worth of Cummins Inc. (NYSE:CMI) on Thursday, May 26. ROSE MARYA M also sold $98,446 worth of Cummins Inc. (NYSE:CMI) on Tuesday, May 17. Shares for $312,500 were sold by Freeland Richard Joseph on Friday, August 5.

Cummins Inc. is a manufacturer of diesel engines. The company has a market cap of $21.58 billion. The Firm operates through four divisions: Engine, Distribution, Components and Power Generation. It has a 17.42 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 news for Cummins Inc. (NYSE:CMI) were recently published by: Seekingalpha.com, which released: “Cummins Inc: A Strong Reputation Gives Rise To Opportunities” on October 04, 2016. Ibj.com‘s article titled: “Cummins CEO: Companies need to stand up for free trade, TPP” and published on October 31, 2016 is yet another important article.

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