1,523 Shares in Cummins Inc. $CMI Acquired by Directional Asset Management

Key Points

• Directional Asset Management bought a new position in Cummins (NYSE:CMI) of 1,523 shares valued at about $777,000 in Q4, and several other funds also increased stakes—institutional investors now own 83.46% of the stock.
• Cummins beat Q4 estimates with EPS $5.81 vs. $5.17 and revenue $8.54B vs. $8.09B, and analysts maintain a consensus "Moderate Buy" rating with an average target price of $600.27 (some firms set targets up to the $675–$693 range).
• Insiders sold 31,195 shares worth about $18.4M over the past three months (insiders now own 0.30%), and the company pays a quarterly dividend of $2.00 ($8.00 annual, ~1.2% yield).

Directional Asset Management purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 1,523 shares of the company's stock, valued at approximately $777,000.

A number of other hedge funds also recently modified their holdings of the stock. TKG Advisors LLC bought a new stake in shares of Cummins in the 4th quarter worth approximately $393,000. Kerusso Capital Management LLC raised its holdings in shares of Cummins by 31.2% in the 4th quarter. Kerusso Capital Management LLC now owns 7,021 shares of the company's stock worth $3,584,000 after purchasing an additional 1,668 shares during the period. Chicago Partners Investment Group LLC raised its holdings in shares of Cummins by 10.7% in the 4th quarter. Chicago Partners Investment Group LLC now owns 3,087 shares of the company's stock worth $1,576,000 after purchasing an additional 298 shares during the period. Quent Long Short Global Small Cap Fund LP bought a new stake in shares of Cummins in the 4th quarter worth approximately $401,000. Finally, Hoey Investments Inc. raised its holdings in shares of Cummins by 24.3% in the 4th quarter. Hoey Investments Inc. now owns 2,579 shares of the company's stock worth $1,316,000 after purchasing an additional 505 shares during the period. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently commented on CMI. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cummins in a report on Friday, April 10th. UBS Group set a $565.00 price target on shares of Cummins and gave the stock a "neutral" rating in a report on Friday, February 6th. Wells Fargo & Company lifted their price objective on shares of Cummins from $630.00 to $693.00 and gave the company an "overweight" rating in a research note on Monday, April 13th. Zacks Research lowered shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $675.00 price objective on shares of Cummins in a research note on Friday, February 6th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $600.27.

Cummins Stock Up 2.9%

Cummins stock opened at $657.49 on Friday. Cummins Inc. has a 1-year low of $282.77 and a 1-year high of $663.01. The firm has a market capitalization of $90.84 billion, a price-to-earnings ratio of 32.04, a P/E/G ratio of 2.02 and a beta of 1.14. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51. The firm has a 50 day simple moving average of $575.23 and a 200 day simple moving average of $528.25.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The business had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. During the same period in the previous year, the business earned $5.16 EPS. Cummins's revenue was up 1.1% compared to the same quarter last year. On average, analysts predict that Cummins Inc. will post 26.03 earnings per share for the current year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, February 20th. Cummins's payout ratio is 38.99%.

Insider Activity

In other news, VP Earl Newsome sold 1,300 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $583.67, for a total transaction of $758,771.00. Following the completion of the transaction, the vice president directly owned 3,389 shares in the company, valued at $1,978,057.63. The trade was a 27.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Donald G. Jackson sold 1,600 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the transaction, the vice president owned 7,214 shares of the company's stock, valued at $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 31,195 shares of company stock worth $18,397,489. Company insiders own 0.30% of the company's stock.

About Cummins

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.