American Trust Reduces Holdings in Cummins Inc. $CMI

Key Points

• American Trust cut its Cummins stake by 17.9% in the first quarter, selling 1,767 shares and ending with 8,093 shares valued at about $4.35 million.
• Cummins posted better-than-expected quarterly results, reporting EPS of $6.15 versus $5.63 expected, while revenue of $8.40 billion also slightly topped estimates and rose 2.7% year over year.
• The company returned cash to shareholders and saw mixed insider activity, paying a $2.00 quarterly dividend, while insiders sold 13,579 shares over the last 90 days and analysts maintained a generally positive outlook with a consensus “Moderate Buy” rating.

American Trust lowered its position in Cummins Inc. (NYSE:CMI - Free Report) by 17.9% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 8,093 shares of the company's stock after selling 1,767 shares during the period. American Trust's holdings in Cummins were worth $4,354,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of CMI. Cedar Mountain Advisors LLC lifted its holdings in Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after buying an additional 45 shares during the last quarter. Thompson Investment Management Inc. purchased a new stake in Cummins during the fourth quarter worth approximately $26,000. Activest Wealth Management increased its stake in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after purchasing an additional 43 shares during the last quarter. Wellington Shields Capital Management LLC acquired a new stake in Cummins during the fourth quarter worth approximately $27,000. Finally, Key Financial Inc lifted its position in shares of Cummins by 62.5% during the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after buying an additional 20 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Performance

Shares of NYSE:CMI traded up $3.54 during trading on Friday, hitting $676.93. 572,903 shares of the company traded hands, compared to its average volume of 1,073,951. The stock has a market capitalization of $93.41 billion, a price-to-earnings ratio of 35.13, a PEG ratio of 1.65 and a beta of 1.22. The business's fifty day moving average is $679.54 and its 200-day moving average is $609.34. Cummins Inc. has a one year low of $334.70 and a one year high of $737.76. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping 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 business had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter last year, the business posted $5.96 EPS. The business's revenue was up 2.7% on a year-over-year basis. As a group, equities analysts predict that Cummins Inc. will post 29.32 earnings per share for the current fiscal year.

Cummins Announces Dividend

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

Insider Transactions at Cummins

In other Cummins news, insider Brett Michael Merritt sold 701 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the completion of the transaction, the insider directly owned 10,404 shares of the company's stock, valued at $7,165,755. The trade was a 6.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction that occurred on 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 directly owned 8,316 shares in the company, valued at approximately $5,912,010.72. This trade represents a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 over the last 90 days. Corporate insiders own 0.30% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on CMI shares. Robert W. Baird set a $700.00 price target on shares of Cummins in a research report on Wednesday, May 6th. UBS Group restated a "buy" rating on shares of Cummins in a report on Wednesday, June 17th. Evercore reiterated an "outperform" rating and issued a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Citigroup boosted their price target on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $738.00.

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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