Check Out What Whales Are Doing With CMI

Investors with a lot of money to spend have taken a bullish stance on Cummins CMI.

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CMI, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 8 options trades for Cummins.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $35,650, and 7, calls, for a total amount of $421,650.

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Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $240.0 to $280.0 for Cummins during the past quarter.

Volume & Open Interest Trends

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Cummins's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Cummins's whale activity within a strike price range from $240.0 to $280.0 in the last 30 days.

Cummins 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

About Cummins

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.

In light of the recent options history for Cummins, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Cummins

• With a volume of 568,161, the price of CMI is down 0.0% at $271.3.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 56 days.

Expert Opinions on Cummins

2 market experts have recently issued ratings for this stock, with a consensus target price of $264.5.

• Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on Cummins with a target price of $285.
• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Cummins with a target price of $244.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Cummins, Benzinga Pro gives you real-time options trades alerts.