Applied Finance Capital Management LLC Reduces Stock Position in Cummins Inc. $CMI

Applied Finance Capital Management LLC lessened its holdings in Cummins Inc. (NYSE:CMI) by 20.9% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 36,191 shares of the company’s stock after selling 9,553 shares during the quarter. Cummins comprises approximately 1.5% of Applied Finance Capital Management LLC’s investment portfolio, making the stock its 29th largest holding. Applied Finance Capital Management LLC’s holdings in Cummins were worth $19,471,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. grew its position in shares of Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock valued at $1,254,929,000 after acquiring an additional 2,434,876 shares during the period. Norges Bank acquired a new stake in Cummins during the fourth quarter worth $863,441,000. Boston Partners purchased a new position in shares of Cummins during the 3rd quarter worth approximately $473,471,000. London Co. of Virginia purchased a new position in Cummins during the 3rd quarter valued at about $231,732,000. Finally, SG Americas Securities LLC grew its position in Cummins by 257.9% in the 1st quarter. SG Americas Securities LLC now owns 736,670 shares of the company’s stock valued at $396,343,000 after acquiring an additional 530,812 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have commented on CMI shares. Robert W. Baird set a $700.00 price target on shares of Cummins in a report on Wednesday, May 6th. Zacks Research raised Cummins from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 7th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Cummins in a research report on Friday, May 22nd. JPMorgan Chase & Co. boosted their price objective on shares of Cummins from $600.00 to $725.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Finally, Citigroup increased their target price on shares of Cummins from $710.00 to $770.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $738.00.

Insider Buying and Selling

In other news, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the sale, the vice president owned 8,316 shares of the company’s stock, valued at $5,912,010.72. The trade was a 8.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Marvin Boakye sold 3,481 shares of Cummins stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the sale, the vice president directly owned 8,508 shares in the company, valued at $5,784,589.20. This represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 in the last ninety days. Insiders own 0.30% of the company’s stock.

Cummins Price Performance

Shares of CMI opened at $676.93 on Monday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a fifty-two week low of $334.70 and a fifty-two week high of $737.76. The firm has a 50-day simple moving average of $679.54 and a 200-day simple moving average of $609.98. The company has a market capitalization of $93.41 billion, a price-to-earnings ratio of 35.13, a price-to-earnings-growth ratio of 1.65 and a beta of 1.22.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the prior year, the business earned $5.96 EPS. The firm’s revenue was up 2.7% compared to the same quarter last year. On average, equities research analysts anticipate that Cummins Inc. will post 29.32 earnings per share for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. Cummins’s dividend payout ratio (DPR) is currently 41.52%.

Cummins Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.