Columbus Macro LLC Purchases 3,709 Shares of Cummins Inc. $CMI

Key Points

• Columbus Macro LLC increased its stake in Cummins Inc. by 22% during the second quarter, owning a total of 20,550 shares valued at approximately $6.73 million.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, representing an annualized yield of 1.8%.
• A number of analysts have upgraded their price targets for Cummins, with Citigroup raising it to $485.00 and Melius setting it at $500.00, reflecting strong market expectations.

Columbus Macro LLC raised its stake in Cummins Inc. (NYSE:CMI - Free Report) by 22.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,550 shares of the company's stock after acquiring an additional 3,709 shares during the quarter. Columbus Macro LLC's holdings in Cummins were worth $6,730,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CMI. Olde Wealth Management LLC purchased a new position in Cummins in the first quarter valued at about $30,000. Accredited Wealth Management LLC purchased a new position in Cummins in the first quarter valued at about $31,000. Opal Wealth Advisors LLC purchased a new position in Cummins in the first quarter valued at about $37,000. Richardson Financial Services Inc. purchased a new position in Cummins in the first quarter valued at about $39,000. Finally, Costello Asset Management INC purchased a new stake in shares of Cummins during the 1st quarter valued at approximately $40,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Cummins

In other Cummins news, VP Robert Enright sold 1,860 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the sale, the vice president owned 955 shares of the company's stock, valued at $384,158.30. This trade represents a 66.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the sale, the vice president directly owned 20,738 shares in the company, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 43,119 shares of company stock worth $17,674,285 in the last 90 days. Corporate insiders own 0.41% of the company's stock.

Cummins Price Performance

Shares of NYSE:CMI opened at $436.53 on Thursday. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins Inc. has a one year low of $260.02 and a one year high of $440.51. The company's fifty day moving average price is $404.89 and its 200-day moving average price is $348.14. The firm has a market capitalization of $60.15 billion, a price-to-earnings ratio of 20.52, a PEG ratio of 2.10 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the firm earned $5.26 EPS. The firm's quarterly revenue was down 1.7% compared to the same quarter last year. On average, equities research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.8%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 37.61%.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Citigroup upped their price target on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a research note on Tuesday, September 23rd. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Ten analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and an average target price of $397.43.

Cummins Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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