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NEW YORK (AP) -- Shares of Cummins Inc. rose Wednesday, after the diesel engine maker declared a two-for-one stock split -- its second of the year -- and said it will repurchase $500 million in shares. In Wednesday trading, Cummins shares rose $6.51, or 5.5 percent, to $124.70, after peaking at $127.59 early in the session. Over the past 52 weeks, the company's shares have traded between $56.32 and $143.45. Wachovia's Andrew Casey backed his "Outperform" rating and $148 to $151 valuation range for Cummins stock, calling the two moves good news for the company's shareholders. "(Tuesday's) share repurchase announcement appears to reflect the company's confidence in its future cash generation potential," Casey wrote in a note to investors. "We view the announcement positively." Casey said the buyback could boost the company's earnings per share by 20 cents to 30 cents. "The company has significantly improved its balance sheet strength and does not appear to have significant plans for acquisition growth, so we continue to expect excess cash will be returned to shareholders through share repurchases and dividends," Casey said.
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