Cardinal Point Capital Management ULC Increases Stake in Cummins Inc. $CMI

Key Points

• Cardinal Point Capital Management increased its stake in Cummins by 141.2% in the fourth quarter, buying an additional 1,412 shares and bringing its total to 2,412 shares valued at about $1.23 million.
• Cummins reported strong quarterly results, posting EPS of $6.15 versus the $5.63 consensus estimate and revenue of $8.40 billion, slightly above forecasts.
• Analysts have become more bullish on the stock, with multiple firms raising price targets and the consensus rating sitting at Moderate Buy; Cummins also declared a quarterly dividend of $2.00 per share.

Cardinal Point Capital Management ULC grew its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 141.2% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,412 shares of the company's stock after purchasing an additional 1,412 shares during the quarter. Cardinal Point Capital Management ULC's holdings in Cummins were worth $1,231,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of CMI. Brighton Jones LLC raised its holdings in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after acquiring an additional 83 shares during the last quarter. Intech Investment Management LLC boosted its holdings in shares of Cummins by 40.8% during the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock worth $1,240,000 after purchasing an additional 1,146 shares during the last quarter. Treasurer of the State of North Carolina boosted its holdings in shares of Cummins by 2.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock worth $21,055,000 after purchasing an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC purchased a new stake in shares of Cummins in the second quarter valued at approximately $225,000. Finally, Osterweis Capital Management Inc. acquired a new stake in shares of Cummins in the second quarter valued at approximately $31,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

Shares of Cummins stock opened at $710.88 on Thursday. The stock has a market capitalization of $98.09 billion, a price-to-earnings ratio of 36.89, a price-to-earnings-growth ratio of 1.78 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The business has a 50-day moving average of $595.91 and a 200 day moving average of $551.55. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08.

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

Cummins Dividend Announcement

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

Analysts Set New Price Targets

Several analysts have issued reports on the company. Barclays upped their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings lowered Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Sanford C. Bernstein set a $600.00 price target on shares of Cummins and gave the company a "market perform" rating in a research report on Friday, February 6th. Argus set a $696.00 price objective on shares of Cummins in a research report on Tuesday, February 10th. Finally, Zacks Research raised shares of Cummins from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $677.87.

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest quarterly results beat expectations, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly ahead of forecasts, reinforcing confidence in business momentum.
• Positive Sentiment: Analysts have turned more bullish, including Citigroup raising its price target to $770, Barclays lifting its target to $760, Evercore reiterating an outperform rating with an $845 target, and Zacks upgrading the stock to strong-buy.
• Positive Sentiment: The company declared a quarterly dividend of $2.00 per share, signaling continued capital returns to shareholders and supporting the stock’s income appeal.
• Neutral Sentiment: Recent coverage highlighted Cummins’ relative performance versus other auto, tires and truck names, but this is more of a comparison piece than a fresh catalyst. Article Title
• Negative Sentiment: Multiple insiders sold shares over the past few days, including VP Jennifer Mary Bush, VP Nathan Stoner, and insider Brett Michael Merritt, which may slightly temper enthusiasm despite the company’s strong operating results.

Insider Activity at Cummins

In other Cummins news, insider Brett Michael Merritt sold 701 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the sale, the insider directly owned 10,404 shares in the company, valued at $7,165,755. This represents a 6.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the transaction, the vice president owned 11,986 shares of the company's stock, valued at approximately $8,344,773.06. This trade represents a 29.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 21,667 shares of company stock worth $13,946,861 over the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Cummins 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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