Cummins Inc. $CMI Shares Sold by Dupree Financial Group LLC

Key Points

• Dupree Financial Group LLC reduced its stake in Cummins by 38.1% in Q4, selling 8,594 shares and retaining 13,943 shares worth about $7.12 million, making CMI its 15th-largest holding.
• Analysts maintain a consensus rating of "Moderate Buy" (11 Buys, 6 Holds) with an average price target of roughly $600.27, though several firms have recently downgraded the stock.
• Cummins beat estimates for the most recent quarter with $5.81 EPS vs. $5.17 expected and $8.54 billion in revenue, and it pays a quarterly dividend of $2.00 (annualized $8.00, ~1.2% yield).

Dupree Financial Group LLC lessened its stake in Cummins Inc. (NYSE:CMI - Free Report) by 38.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 13,943 shares of the company's stock after selling 8,594 shares during the quarter. Cummins comprises approximately 2.6% of Dupree Financial Group LLC's holdings, making the stock its 15th biggest holding. Dupree Financial Group LLC's holdings in Cummins were worth $7,117,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Brighton Jones LLC raised its stake in shares of Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after acquiring an additional 83 shares during the period. Intech Investment Management LLC raised its stake in shares of Cummins by 40.8% in the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock valued at $1,240,000 after acquiring an additional 1,146 shares during the period. Treasurer of the State of North Carolina raised its stake in shares of Cummins by 2.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock valued at $21,055,000 after acquiring an additional 1,759 shares during the period. ICW Investment Advisors LLC purchased a new position in shares of Cummins in the 2nd quarter valued at $225,000. Finally, Osterweis Capital Management Inc. purchased a new position in shares of Cummins in the 2nd quarter valued at $31,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Ratings Changes

CMI has been the topic of a number of research reports. Wall Street Zen downgraded shares of Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Wolfe Research downgraded shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price on the stock. in a research note on Monday, January 26th. Robert W. Baird set a $580.00 target price on shares of Cummins in a research note on Friday, February 6th. Weiss Ratings reissued a "buy (b)" rating on shares of Cummins in a research note on Friday, April 10th. Finally, Morgan Stanley reissued an "overweight" rating and issued a $675.00 target price on shares of Cummins in a research note on Friday, February 6th. Eleven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $600.27.

Cummins Stock Performance

Cummins stock opened at $660.83 on Friday. Cummins Inc. has a 12-month low of $284.23 and a 12-month high of $663.38. The company has a market capitalization of $91.30 billion, a price-to-earnings ratio of 32.20, a price-to-earnings-growth ratio of 2.08 and a beta of 1.14. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. The firm's fifty day moving average price is $576.44 and its 200 day moving average price is $529.79.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter in the previous year, the firm posted $5.16 EPS. The firm's quarterly revenue was up 1.1% on a year-over-year basis. On average, research analysts forecast that Cummins Inc. will post 26.03 EPS for the current fiscal year.

Cummins Announces Dividend

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

Insider Activity

In related news, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction 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 sale, the vice president owned 15,130 shares of the company's stock, valued at $8,849,990.90. The trade was a 22.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 4,054 shares of Cummins stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the sale, the vice president directly owned 15,807 shares in the company, valued at $8,873,101.38. This trade represents a 20.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 31,195 shares of company stock worth $18,397,489 over the last three months. 0.30% of the stock is currently 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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