Cummins Inc. $CMI Shares Sold by D.A. Davidson & CO.

Key Points

• D.A. Davidson & CO. reduced its position in Cummins by 3.4% in Q4, selling 10,553 shares and now holding 302,705 shares worth about $154.5 million, making CMI its 20th-largest holding.
• Cummins beat expectations last quarter with EPS of $5.81 vs. $5.17 estimated and revenue of $8.54 billion vs. $8.09 billion, and the company pays a $2.00 quarterly dividend ($8.00 annualized, ~1.2% yield).
• Major institutions also moved into CMI—Boston Partners opened a roughly $473 million stake and BNY Mellon increased its holdings by 50.8% to 1,450,659 shares—leaving institutional ownership at about 83.46%.

D.A. Davidson & CO. reduced its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 3.4% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 302,705 shares of the company's stock after selling 10,553 shares during the period. Cummins accounts for about 0.9% of D.A. Davidson & CO.'s holdings, making the stock its 20th biggest holding. D.A. Davidson & CO. owned approximately 0.22% of Cummins worth $154,516,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CMI. Boston Partners acquired a new stake in Cummins during the third quarter worth about $473,471,000. London Co. of Virginia acquired a new stake in Cummins during the third quarter worth about $231,732,000. Bank of New York Mellon Corp increased its position 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 during the last quarter. Nordea Investment Management AB increased its position in Cummins by 103.8% during the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock worth $280,397,000 after purchasing an additional 278,350 shares during the last quarter. Finally, Merewether Investment Management LP acquired a new stake in Cummins during the third quarter worth about $91,147,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Price Performance

Shares of CMI opened at $660.83 on Monday. Cummins Inc. has a 1-year low of $284.23 and a 1-year high of $663.38. The stock has a market cap of $91.30 billion, a PE ratio of 32.20, a P/E/G ratio of 2.09 and a beta of 1.14. The firm has a 50-day simple moving average of $576.44 and a two-hundred day simple moving average of $531.12. 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 (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. The firm had revenue of $8.54 billion during the quarter, compared to analysts' expectations of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The business's quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.16 earnings per share. As a group, analysts forecast that Cummins Inc. will post 26.03 EPS for the current year.

Cummins Announces Dividend

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

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Robert W. Baird set a $580.00 price target on shares of Cummins in a research report on Friday, February 6th. Barclays lifted their price target on shares of Cummins from $546.00 to $610.00 and gave the company an "overweight" rating in a research report on Friday, January 23rd. Citigroup lifted their price target on shares of Cummins from $630.00 to $710.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Wall Street Zen cut shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Finally, Wells Fargo & Company lifted their price target on shares of Cummins from $630.00 to $693.00 and gave the company an "overweight" rating in a research report on Monday, April 13th. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Cummins presently has a consensus rating of "Moderate Buy" and an average price target of $600.27.

Insider Transactions at Cummins

In related news, VP Donald G. Jackson sold 1,600 shares of Cummins stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the completion of the transaction, the vice president owned 7,214 shares in the company, valued at approximately $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 SEC, which is accessible through this hyperlink. Also, VP Jennifer Mary Bush sold 4,270 shares of Cummins 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 transaction, the vice president 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 31,195 shares of company stock valued at $18,397,489. 0.30% of the stock is 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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