Aggressive’ Bearish Options Activity Seen in Cummins Inc.

 Aggressive' Bearish Options Activity Seen in Cummins Inc.

In today’s session Cummins Inc. (CMI) recorded an unusually high (182) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious CMI decrease. With 182 contracts traded and 16664 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: CMI170120P00120000 closed last at: $0.85 or 19% down. The stock increased 1.02% or $1.42 on November 23, hitting $140.8. Cummins Inc. (NYSE:CMI) has risen 21.26% since April 22, 2016 and is uptrending. It has outperformed by 15.86% the S&P500.

Analysts await Cummins Inc. (NYSE:CMI) to report earnings on February, 2. They expect $1.99 earnings per share, down 4.78% or $0.10 from last year’s $2.09 per share. CMI’s profit will be $341.04 million for 17.69 P/E if the $1.99 EPS becomes a reality. After $2.02 actual earnings per share reported by Cummins Inc. for the previous quarter, Wall Street now forecasts -1.49% negative EPS growth.

Cummins Inc. (NYSE:CMI) Ratings Coverage

Out of 22 analysts covering Cummins (NYSE:CMI), 5 rate it a “Buy”, 4 “Sell”, while 13 “Hold”. This means 23% are positive. Cummins has been the topic of 49 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The stock of Cummins Inc. (NYSE:CMI) has “Hold” rating given on Tuesday, September 22 by Deutsche Bank. The rating was downgraded by Morgan Stanley to “Underweight” on Wednesday, October 28. Bank of America upgraded it to “Neutral” rating and $122 target price in Monday, April 18 report. The firm earned “Outperform” rating on Wednesday, October 28 by Macquarie Research. The stock has “Underweight” rating given by Barclays Capital on Wednesday, October 28. The stock has “Hold” rating given by Deutsche Bank on Thursday, December 17. On Friday, August 21 the stock rating was upgraded by Standpoint Research to “Buy”. On Monday, November 7 the stock rating was upgraded by Evercore to “Buy”. The company was maintained on Wednesday, October 12 by Barclays Capital. On Wednesday, November 2 the stock rating was maintained by Stifel Nicolaus with “Hold”.

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 increased to 1.07 in 2016 Q2. Its up 0.12, from 0.95 in 2016Q1. The ratio is positive, 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.
First Midwest Bancorp Trust Division has 0.14% invested in the company for 10,028 shares. Bartlett And Co holds 0% or 526 shares in its portfolio. Pnc Financial Svcs Group has 0.03% invested in the company for 235,350 shares. Goldman Sachs Group Inc Inc last reported 0.04% of its portfolio in the stock. North Star has invested 0% of its portfolio in Cummins Inc. (NYSE:CMI). Cornercap Invest Counsel has 0.25% invested in the company for 11,895 shares. Security Commercial Bank Of So Dak reported 6,728 shares or 1.02% of all its holdings. Macquarie Grp Ltd has invested 0.01% of its portfolio in Cummins Inc. (NYSE:CMI). Andra Ap accumulated 32,700 shares or 0.09% of the stock. Seizert Prtnrs Ltd Com owns 450,163 shares or 1.92% of their US portfolio. The Colorado-based Cetera Advsrs Ltd Liability has invested 0.04% in Cummins Inc. (NYSE:CMI). The Illinois-based Crystal Rock Cap Management has invested 1.82% in Cummins Inc. (NYSE:CMI). Shell Asset, a Netherlands-based fund reported 37,082 shares. The Tennessee-based Diversified has invested 0.33% in Cummins Inc. (NYSE:CMI). Martingale Asset Management L P holds 0.02% of its portfolio in Cummins Inc. (NYSE:CMI) for 9,868 shares.

Insider Transactions: Since May 25, 2016, the stock had 0 insider purchases, and 12 insider sales for $5.81 million net activity. Shares for $405,000 were sold by CHAPMAN STEVEN M. ROSE MARYA M sold $95,070 worth of stock. Ward Pat had sold 5,000 shares worth $612,500. HERMAN ALEXIS M had sold 1,086 shares worth $123,446 on Thursday, May 26. 5,100 shares with value of $568,845 were sold by Talaulicar Anant on Wednesday, May 25. Ewald Thaddeus B had sold 820 shares worth $104,099 on Thursday, August 11. The insider Cook Jill E sold 5,980 shares worth $747,799.

Cummins Inc. is a manufacturer of diesel engines. The company has a market cap of $23.94 billion. The Firm operates through four divisions: Engine, Distribution, Components and Power Generation. It has a 20.4 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: Nasdaq.com which released: “Cummins Inc. (CMI) Ex-Dividend Date Scheduled for November 17, 2016” on November 16, 2016. Also Fortune.com published the news titled: “Fiat Chrysler to Fight Diesel Cheating Lawsuit” on November 15, 2016. Forbes.com‘s news article titled: “Ex-Dividend Reminder: Dean Foods, Carter’s and Cummins” with publication date: November 15, 2016 was also an interesting one.

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