Brown Lisle Cummings Inc. Acquires 1,762 Shares of Cummins Inc. $CMI

Key Points

• Brown Lisle Cummings raised its Cummins stake by 20.7%, buying 1,762 additional shares to hold 10,274 shares worth about $5.24 million, making CMI ~1.3% of the firm's portfolio and its 16th-largest position.
• Corporate insiders have been net sellers recently — VP Jennifer Mary Bush sold 4,270 shares and Director William I. Miller sold 18,107 shares, with insiders offloading 31,195 shares (~$18.4 million) in the last 90 days and now owning about 0.41%.
• Cummins beat expectations for the quarter with $5.81 EPS vs. $5.17 expected and $8.54B revenue vs. $8.09B, and declared a $2.00 quarterly dividend ($8.00 annualized, ~1.3% yield).

Brown Lisle Cummings Inc. increased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 20.7% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 10,274 shares of the company's stock after acquiring an additional 1,762 shares during the quarter. Cummins makes up about 1.3% of Brown Lisle Cummings Inc.'s holdings, making the stock its 16th largest position. Brown Lisle Cummings Inc.'s holdings in Cummins were worth $5,244,000 at the end of the most recent quarter.

Several other hedge funds have also recently made changes to their positions in the company. Fisher Asset Management LLC raised its stake in shares of Cummins by 2.8% in the third quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after buying an additional 91,956 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Cummins by 0.5% in the third quarter. Dimensional Fund Advisors LP now owns 1,537,347 shares of the company's stock valued at $649,280,000 after buying an additional 7,372 shares during the period. Raymond James Financial Inc. raised its stake in shares of Cummins by 4.5% in the third quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company's stock valued at $640,090,000 after buying an additional 64,822 shares during the period. Bank of New York Mellon Corp raised its stake in shares of Cummins by 50.8% in the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock valued at $612,715,000 after buying an additional 488,430 shares during the period. Finally, Boston Partners bought a new stake in shares of Cummins in the third quarter valued at $473,471,000. 83.46% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, VP Jennifer Mary Bush sold 4,270 shares of the business's stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at $8,849,990.90. The trade was a 22.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director William I. Miller sold 18,107 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total value of $10,811,689.70. Following the transaction, the director owned 34,243 shares of the company's stock, valued at approximately $20,446,495.30. The trade was a 34.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 31,195 shares of company stock valued at $18,397,489 in the last 90 days. Corporate insiders own 0.41% of the company's stock.

Cummins Price Performance

Shares of NYSE CMI opened at $615.80 on Friday. The stock has a market cap of $85.08 billion, a PE ratio of 30.01, a price-to-earnings-growth ratio of 1.95 and a beta of 1.14. Cummins Inc. has a fifty-two week low of $269.24 and a fifty-two week high of $620.78. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. The stock has a fifty day moving average of $568.28 and a 200-day moving average of $516.15.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating the consensus estimate of $5.17 by $0.64. The company had revenue of $8.54 billion during the quarter, compared to analysts' expectations of $8.09 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm's quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business earned $5.16 earnings per share. Equities research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were given a $2.00 dividend. The ex-dividend date was Friday, February 20th. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. Cummins's payout ratio is 38.99%.

Wall Street Analyst Weigh In

Several brokerages have issued reports on CMI. Robert W. Baird set a $580.00 target price on Cummins in a research note on Friday, February 6th. Citigroup boosted their target price on Cummins from $580.00 to $630.00 and gave the company a "buy" rating in a research note on Tuesday, January 13th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Weiss Ratings restated a "buy (b-)" rating on shares of Cummins in a research note on Monday, December 29th. Finally, Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. Eleven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $588.93.

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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