Cummins Inc. $CMI Shares Sold by Graham Capital Management L.P.

Key Points

• Graham Capital Management cut its Cummins stake by 53.9% in Q4, leaving it with 7,609 shares worth about $3.88 million.
• Cummins reported better-than-expected Q1 results, with EPS of $6.15 versus $5.63 expected and revenue of $8.40 billion, up 2.7% year over year.
• The company also paid a quarterly dividend of $2.00 per share, and Wall Street remains constructive with a consensus Moderate Buy rating and average price target of $726.14.

Graham Capital Management L.P. reduced its stake in Cummins Inc. (NYSE:CMI - Free Report) by 53.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,609 shares of the company's stock after selling 8,896 shares during the period. Graham Capital Management L.P.'s holdings in Cummins were worth $3,884,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Fisher Asset Management LLC increased its holdings in Cummins by 2.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after purchasing an additional 91,956 shares in the last quarter. Accredited Wealth Management LLC increased its holdings in Cummins by 3,100.0% in the 3rd quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock valued at $1,352,000 after purchasing an additional 3,100 shares in the last quarter. Jefferies Financial Group Inc. acquired a new stake in Cummins in the 3rd quarter valued at $11,129,000. Payden & Rygel acquired a new stake in Cummins in the 3rd quarter valued at $9,757,000. Finally, TIAA Trust National Association increased its holdings in Cummins by 836.5% in the 3rd quarter. TIAA Trust National Association now owns 35,117 shares of the company's stock valued at $14,832,000 after purchasing an additional 31,367 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Stock Performance

Shares of CMI stock opened at $701.15 on Wednesday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a one year low of $307.90 and a one year high of $718.08. The company's 50-day simple moving average is $654.05 and its 200-day simple moving average is $586.69. The stock has a market capitalization of $96.75 billion, a price-to-earnings ratio of 36.39, a PEG ratio of 1.66 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter last year, the company posted $5.96 earnings per share. The company's quarterly revenue was up 2.7% compared to the same quarter last year. Equities analysts anticipate that Cummins Inc. will post 29.29 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.1%. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insider Buying and Selling at Cummins

In other news, insider Brett Michael Merritt sold 701 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the transaction, the insider owned 10,404 shares of the company's stock, valued at approximately $7,165,755. This trade represents a 6.31% 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 Marvin Boakye sold 3,481 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the transaction, the vice president directly owned 8,508 shares in the company, valued at $5,784,589.20. The trade was a 29.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 13,579 shares of company stock valued at $9,377,684. Corporate insiders own 0.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on CMI shares. Truist Financial set a $815.00 price target on Cummins in a report on Wednesday, May 6th. Wall Street Zen downgraded Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. UBS Group upgraded Cummins from a "neutral" rating to a "buy" rating and raised their target price for the company from $565.00 to $850.00 in a research note on Monday, June 8th. Barclays raised their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, Morgan Stanley raised their target price on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Cummins has a consensus rating of "Moderate Buy" and an average price target of $726.14.

About Cummins

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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