Applied Finance Capital Management LLC Has $23.35 Million Stock Holdings in Cummins Inc. $CMI

Key Points

• Applied Finance Capital Management cut its Cummins stake by 18.8% in the fourth quarter, but still held 45,744 shares worth about $23.35 million. Cummins remained its 20th-largest position and made up 1.7% of the portfolio.
• Cummins reported stronger-than-expected quarterly results, with EPS of $6.15 versus the $5.63 estimate and revenue of $8.40 billion, slightly above forecasts. Revenue also rose 2.7% year over year.
• The company announced a quarterly dividend of $2.00 per share, payable June 4, implying an annualized dividend of $8.00 and a 1.1% yield. Meanwhile, analysts maintain a Moderate Buy consensus with an average price target of $677.87.

Applied Finance Capital Management LLC trimmed its position in Cummins Inc. (NYSE:CMI - Free Report) by 18.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 45,744 shares of the company's stock after selling 10,605 shares during the quarter. Cummins makes up 1.7% of Applied Finance Capital Management LLC's portfolio, making the stock its 20th biggest position. Applied Finance Capital Management LLC's holdings in Cummins were worth $23,350,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CMI. Thompson Investment Management Inc. bought a new position in Cummins during the fourth quarter worth about $26,000. Activest Wealth Management increased its position in Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares during the period. Flagship Wealth Advisors LLC acquired a new stake in shares of Cummins during the 3rd quarter worth $28,000. Ares Financial Consulting LLC bought a new position in shares of Cummins in the fourth quarter worth about $29,000. Finally, Osterweis Capital Management Inc. acquired a new stake in Cummins during the 2nd quarter worth approximately $31,000. Institutional investors own 83.46% of the company's stock.

Insider Transactions at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the company's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total value of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares of the company's stock, valued at $8,873,101.38. This represents a 20.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, 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 sale, the chief accounting officer directly owned 14,084 shares in the company, valued at approximately $9,652,328.56. The trade was a 14.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 22,397 shares of company stock valued at $14,465,833. 0.30% of the stock is owned by corporate insiders.

Cummins Stock Down 2.5%

CMI stock opened at $698.36 on Friday. Cummins Inc. has a fifty-two week low of $307.90 and a fifty-two week high of $718.08. The business's 50-day moving average is $601.51 and its two-hundred day moving average is $554.63. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The company has a market cap of $96.37 billion, a price-to-earnings ratio of 36.24, a P/E/G ratio of 1.81 and a beta of 1.27.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.Cummins's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $5.96 earnings per share. As a group, analysts forecast that Cummins Inc. will post 28.39 earnings per share for the current year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be paid a $2.00 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. Cummins's dividend payout ratio is 41.52%.

Wall Street Analysts Forecast Growth

CMI has been the subject of a number of research analyst reports. Weiss Ratings downgraded Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Evercore restated an "outperform" rating and issued a $845.00 price objective on shares of Cummins in a research note on Monday. Wolfe Research cut Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective on the stock. in a report on Monday, January 26th. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Finally, JPMorgan Chase & Co. raised their price target on Cummins from $600.00 to $725.00 and gave the stock a "neutral" 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 five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $677.87.

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.

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.