Cummins (NYSE:CMI) CAO Sells $1,650,298.72 in Stock

Key Points

• Cummins CAO Nicole Lamb-Hale sold 2,408 shares on May 8 for about $1.65 million, reducing her direct ownership by 14.6% to 14,084 shares.
• The stock edged down 0.5% to $679.14 on Friday, after trading as high as a 12-month peak of $718.08; volume was below its average level.
• Cummins recently reported better-than-expected quarterly results, posting EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, while analysts currently rate the stock a Moderate Buy with an average target price of $649.47.

Cummins Inc. (NYSE:CMI - Get Free Report) CAO Nicole Lamb-Hale sold 2,408 shares of Cummins stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer directly owned 14,084 shares in the company, valued at $9,652,328.56. This trade represents a 14.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Cummins Trading Down 0.5%

Cummins stock traded down $3.74 during trading hours on Friday, reaching $679.14. The company had a trading volume of 454,563 shares, compared to its average volume of 916,225. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.16. The company has a 50-day moving average price of $586.92 and a 200 day moving average price of $543.54. The firm has a market cap of $93.83 billion, a price-to-earnings ratio of 35.24, a P/E/G ratio of 2.26 and a beta of 1.27. Cummins Inc. has a 12-month low of $305.13 and a 12-month high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The business had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the firm earned $5.96 EPS. Equities analysts forecast that Cummins Inc. will post 26.06 earnings per share for the current year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were paid a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, February 20th. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. Cummins's payout ratio is 41.52%.

Institutional Investors Weigh In On Cummins

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Thompson Investment Management Inc. bought a new stake in Cummins in the fourth quarter worth $26,000. Activest Wealth Management boosted its holdings in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after acquiring an additional 43 shares in the last quarter. Cedar Mountain Advisors LLC boosted its holdings in Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after acquiring an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC bought a new stake in Cummins in the fourth quarter worth $27,000. Finally, Flagship Wealth Advisors LLC bought a new stake in Cummins in the third quarter worth $28,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Sanford C. Bernstein set a $600.00 target price on Cummins and gave the company a "market perform" rating in a research note on Friday, February 6th. UBS Group set a $565.00 target price on Cummins and gave the company a "neutral" rating in a research note on Friday, February 6th. Wells Fargo & Company boosted their target price on Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a research note on Wednesday. Robert W. Baird set a $700.00 target price on Cummins in a research note on Wednesday. Finally, Morgan Stanley lifted their price target on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research report on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and an average target price of $649.47.

Cummins Company 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.

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