Beacon Investment Advisors LLC Sells 3,481 Shares of Cummins Inc. $CMI

Key Points

• Beacon Investment Advisors LLC cut its Cummins stake by 85% in the fourth quarter, selling 3,481 shares and leaving it with 616 shares valued at about $314,000.
• Cummins reported stronger-than-expected quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly topping forecasts; revenue also rose 2.7% year over year.
• Analysts remain generally positive on CMI, with several firms raising price targets and the consensus rating sitting at “Moderate Buy” with a target price of $726.14.

Beacon Investment Advisors LLC lessened its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 85.0% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 616 shares of the company's stock after selling 3,481 shares during the period. Beacon Investment Advisors LLC's holdings in Cummins were worth $314,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the company. Thompson Investment Management Inc. acquired a new stake in Cummins in the fourth quarter worth $26,000. Activest Wealth Management grew 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 purchasing an additional 43 shares during the period. Wellington Shields Capital Management LLC acquired a new stake in Cummins in the fourth quarter worth $27,000. Ares Financial Consulting LLC acquired a new stake in Cummins in the fourth quarter worth $29,000. Finally, Osterweis Capital Management Inc. acquired a new stake in Cummins in the second quarter worth $31,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Up 3.2%

Shares of NYSE CMI opened at $701.15 on Wednesday. The stock has a market capitalization of $96.75 billion, a P/E ratio of 36.39, a P/E/G ratio of 1.66 and a beta of 1.24. The company has a 50-day moving average price of $654.05 and a 200-day moving average price of $586.69. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $718.08. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business's revenue was up 2.7% on a year-over-year basis. During the same period last year, the company earned $5.96 earnings per share. On average, equities research analysts forecast that Cummins Inc. will post 29.29 EPS for the current fiscal year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, May 22nd. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insider Activity at Cummins

In related news, VP Marvin Boakye sold 3,481 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the transaction, the vice president directly owned 8,508 shares of the company's stock, valued at $5,784,589.20. This trade represents a 29.03% decrease in their ownership of the stock. 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 730 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the transaction, the vice president directly owned 8,316 shares in the company, valued at $5,912,010.72. The trade was a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 13,579 shares of company stock valued at $9,377,684 over the last three months. Insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have commented on CMI shares. Raymond James Financial raised their price target on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a report on Tuesday, May 26th. JPMorgan Chase & Co. raised their price target on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Argus raised their price target on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. UBS Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and raised their price target for the stock from $565.00 to $850.00 in a report on Monday, June 8th. Finally, Citigroup raised their price target on shares of Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $726.14.

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.

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