Clark Capital Management Group Inc. Increases Holdings in Cummins Inc. $CMI

Key Points

• Clark Capital raised its stake in Cummins by 2.4% to 195,158 shares (about $82.4M), while several large institutions including Norges Bank, Boston Partners, American Century, BNY Mellon and Ontario Teachers also added sizable positions, leaving institutional ownership at 83.46%.
• Cummins beat expectations for the quarter with EPS of $5.81 vs. $5.17 estimated and revenue of $8.54B vs. $8.09B, reporting a net margin of 8.44% and return on equity of 25.71%.
• Dividend and insider activity: Cummins pays a $2.00 quarterly dividend ($8.00 annual, ~1.5% yield), while insiders sold about 31,195 shares (~$18.4M) over the last quarter, leaving insiders with 0.41% ownership.

Clark Capital Management Group Inc. raised its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 2.4% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 195,158 shares of the company's stock after acquiring an additional 4,646 shares during the quarter. Clark Capital Management Group Inc. owned approximately 0.14% of Cummins worth $82,429,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Norges Bank purchased a new stake in Cummins during the second quarter worth approximately $505,941,000. Boston Partners purchased a new position in Cummins in the third quarter valued at approximately $473,471,000. American Century Companies Inc. raised its holdings in Cummins by 138.8% during the second quarter. American Century Companies Inc. now owns 909,653 shares of the company's stock worth $297,912,000 after purchasing an additional 528,689 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock worth $612,715,000 after purchasing an additional 488,430 shares in the last quarter. Finally, Ontario Teachers Pension Plan Board lifted its position in shares of Cummins by 5,158.9% during the 2nd quarter. Ontario Teachers Pension Plan Board now owns 435,960 shares of the company's stock worth $142,777,000 after buying an additional 427,670 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Down 0.6%

CMI stock opened at $535.58 on Friday. The company has a market cap of $74.00 billion, a price-to-earnings ratio of 26.10, a price-to-earnings-growth ratio of 1.70 and a beta of 1.12. The company has a fifty day moving average price of $574.09 and a 200 day moving average price of $495.92. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $617.98.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The company had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.09 billion. During the same period last year, the firm posted $5.16 EPS. Cummins's revenue for the quarter was up 1.1% on a year-over-year basis. Sell-side analysts expect 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. Investors of record on Friday, February 20th were given a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.5%. The ex-dividend date was Friday, February 20th. Cummins's payout ratio is 38.99%.

Analysts Set New Price Targets

A number of research analysts recently commented on CMI shares. Zacks Research downgraded shares of Cummins from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, January 28th. Argus set a $696.00 price target on shares of Cummins in a research report on Tuesday, February 10th. Wells Fargo & Company upped their price objective on shares of Cummins from $599.00 to $630.00 and gave the company an "overweight" rating in a research note on Friday, January 23rd. Citigroup lifted their target price on Cummins from $580.00 to $630.00 and gave the stock a "buy" rating in a research report on Tuesday, January 13th. Finally, Wolfe Research downgraded Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price for the company. in a report on Monday, January 26th. Eleven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $588.93.

Insider Activity

In other Cummins news, Director William I. Miller sold 18,107 shares of the company's stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the completion of the sale, the director directly owned 34,243 shares of the company's stock, valued at $20,446,495.30. This represents a 34.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Earl Newsome sold 1,300 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $583.67, for a total value of $758,771.00. Following the sale, the vice president directly owned 3,389 shares of the company's stock, valued at $1,978,057.63. The trade was a 27.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 31,195 shares of company stock worth $18,397,489 over the last quarter. 0.41% of the stock is owned by insiders.

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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