Cummins Inc. $CMI Shares Bought by Smith Salley Wealth Management

Key Points

• Smith Salley Wealth Management increased its stake in Cummins by 1,381.8%, buying 20,299 shares to own 21,768 shares valued at $11,111,000 at the end of the quarter.
• Cummins beat expectations this quarter with EPS of $5.81 vs. $5.17 estimated and revenue of $8.54 billion (vs. $8.09B), and recently paid a $2.00 quarterly dividend (annualized $8.00, yield 1.3%).
• Institutional investors hold 83.46% of the stock, insiders sold about 31,195 shares (~$18.4M) in the last 90 days, and analysts carry a consensus "Moderate Buy" rating with a $598.47 average price target.

Smith Salley Wealth Management grew its stake in Cummins Inc. (NYSE:CMI - Free Report) by 1,381.8% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 21,768 shares of the company's stock after purchasing an additional 20,299 shares during the period. Smith Salley Wealth Management's holdings in Cummins were worth $11,111,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Thompson Investment Management Inc. acquired a new position in shares of Cummins in the fourth quarter worth about $26,000. Holos Integrated Wealth LLC acquired a new stake in shares of Cummins during the 4th quarter valued at about $32,000. Palouse Capital Management Inc. purchased a new position in shares of Cummins in the 4th quarter valued at about $33,000. Flagship Wealth Advisors LLC purchased a new position in shares of Cummins in the 3rd quarter valued at about $28,000. Finally, Olistico Wealth LLC acquired a new position in Cummins in the 4th quarter worth about $39,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

CMI opened at $626.91 on Monday. Cummins Inc. has a twelve month low of $269.24 and a twelve month high of $628.00. The firm has a market capitalization of $86.62 billion, a PE ratio of 30.55, a PEG ratio of 1.98 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. The firm's 50-day moving average price is $571.31 and its 200 day moving average price is $523.68.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $5.81 EPS for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter in the prior year, the firm earned $5.16 EPS. Cummins's quarterly revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.3%. The ex-dividend date was Friday, February 20th. Cummins's dividend payout ratio (DPR) is presently 38.99%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on CMI shares. Truist Financial reiterated a "buy" rating and set a $703.00 price target (up from $653.00) on shares of Cummins in a research report on Friday, February 6th. Robert W. Baird set a $580.00 target price on Cummins in a research note on Friday, February 6th. Wolfe Research lowered Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price on the stock. in a research report on Monday, January 26th. Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the stock a "market perform" rating in a research report on Friday, February 6th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Cummins from $485.00 to $580.00 and gave the company a "neutral" rating in a report on Wednesday, January 14th. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $598.47.

Insider Activity at Cummins

In other Cummins news, VP Donald G. Jackson sold 1,600 shares of Cummins stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the transaction, the vice president directly owned 7,214 shares of the company's stock, valued at $4,329,337.82. The trade was a 18.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Jennifer Mary Bush sold 4,270 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were 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 approximately $8,849,990.90. This trade represents a 22.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 31,195 shares of company stock valued at $18,397,489 over the last ninety days. Corporate insiders own 0.30% of the company's stock.

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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