Cornerstone Investment Partners LLC Buys New Position in Cummins Inc. $CMI

Key Points

• Cornerstone Investment Partners opened a new position in Cummins, buying 101,257 shares worth about $51.7 million, equal to 0.07% of Cummins and representing 2.0% of Cornerstone's holdings (its 27th largest position).
• Company insiders have been net sellers recently: VPs Jennifer Mary Bush and Earl Newsome sold shares in February (totaling several thousand shares), and insiders disposed of 31,195 shares worth $18.4 million in the last 90 days; insiders now own 0.30% of the stock.
• Cummins beat quarterly expectations with $5.81 EPS vs. $5.17 est. and $8.54 billion revenue vs. $8.09 billion est.; the firm has a $91.3 billion market cap, pays a $2.00 quarterly dividend (1.2% yield), and carries a consensus analyst rating of "Moderate Buy" with a $600.27 price target.

Cornerstone Investment Partners LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 101,257 shares of the company's stock, valued at approximately $51,687,000. Cummins makes up 2.0% of Cornerstone Investment Partners LLC's holdings, making the stock its 27th biggest position. Cornerstone Investment Partners LLC owned 0.07% of Cummins at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Thompson Investment Management Inc. purchased a new stake in shares of Cummins during the fourth quarter valued at $26,000. Holos Integrated Wealth LLC purchased a new stake in shares of Cummins during the fourth quarter valued at $32,000. Palouse Capital Management Inc. purchased a new stake in shares of Cummins during the fourth quarter valued at $33,000. Flagship Wealth Advisors LLC purchased a new stake in shares of Cummins during the third quarter valued at $28,000. Finally, Olistico Wealth LLC purchased a new stake in shares of Cummins during the fourth quarter valued at $39,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Cummins

In other news, VP Jennifer Mary Bush sold 4,270 shares of the firm'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 sale, the vice president directly owned 15,130 shares of the company's stock, valued at $8,849,990.90. This trade represents a 22.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Earl Newsome sold 1,300 shares of the firm's stock in a transaction dated 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. This trade represents a 27.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 31,195 shares of company stock worth $18,397,489. 0.30% of the stock is currently owned by company insiders.

Cummins Stock Up 0.0%

Shares of Cummins stock opened at $660.83 on Monday. The stock has a 50-day moving average price of $576.44 and a 200 day moving average price of $531.12. The company has a market cap of $91.30 billion, a P/E ratio of 32.20, a P/E/G ratio of 2.09 and a beta of 1.14. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51. Cummins Inc. has a 1 year low of $284.23 and a 1 year high of $663.38.

Cummins (NYSE:CMI - Get Free Report) last announced 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. The firm had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.09 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business's revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the prior year, the business earned $5.16 EPS. As a group, analysts expect that Cummins Inc. will post 26.03 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Friday, February 20th. Cummins's dividend payout ratio is currently 38.99%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CMI. Wall Street Zen downgraded Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. JPMorgan Chase & Co. upped their target price on Cummins from $485.00 to $580.00 and gave the company a "neutral" rating in a report on Wednesday, January 14th. Raymond James Financial upped their target price on Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a report on Monday, February 9th. Zacks Research downgraded Cummins from a "strong-buy" rating to a "hold" rating in a report on Wednesday, January 28th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cummins in a report on Friday, April 10th. Eleven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $600.27.

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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