Cummins Inc. $CMI Stock Acquired by Sapient Capital LLC

Key Points

• Sapient Capital increased its Cummins stake by 39.5% in the third quarter, bringing its holdings to 15,658 shares valued at approximately $8.1 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $717.59, though several firms recently lowered their targets to around $600.
• Cummins shares recently traded near $520, well below their 52-week high of $737.76. The company raised its quarterly dividend to $2.20 per share, while its latest earnings missed estimates despite 9.4% year-over-year revenue growth.

Sapient Capital LLC lifted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 39.5% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 15,658 shares of the company's stock after buying an additional 4,436 shares during the quarter. Sapient Capital LLC's holdings in Cummins were worth $8,088,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Cedar Mountain Advisors LLC grew its position in shares of Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after purchasing an additional 45 shares during the last quarter. Persistent Asset Partners Ltd purchased a new stake in Cummins in the 2nd quarter valued at approximately $26,000. Key Financial Inc grew its holdings in Cummins by 62.5% during the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after buying an additional 20 shares during the last quarter. Elevation Wealth Partners LLC raised its holdings in shares of Cummins by 91.7% in the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock worth $33,000 after acquiring an additional 22 shares during the last quarter. Finally, Steph & Co. raised its holdings in shares of Cummins by 112.9% in the first quarter. Steph & Co. now owns 66 shares of the company's stock worth $36,000 after acquiring an additional 35 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Cummins

In other news, VP Earl Newsome sold 698 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the sale, the vice president owned 4,479 shares of the company's stock, valued at $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CMI. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $700.00 price objective on shares of Cummins in a research note on Wednesday, August 5th. Morgan Stanley raised their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Citigroup boosted their price target on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Bank of America decreased their price objective on Cummins from $731.00 to $600.00 in a report on Thursday, September 24th. Finally, JPMorgan Chase & Co. dropped their target price on Cummins from $690.00 to $600.00 and set a "neutral" rating for the company in a research note on Wednesday, September 23rd. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $717.59.

Cummins Trading Up 0.5%

Shares of Cummins stock traded up $2.81 during trading hours on Thursday, reaching $520.13. The stock had a trading volume of 1,005,736 shares, compared to its average volume of 985,956. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. Cummins Inc. has a 1 year low of $400.72 and a 1 year high of $737.76. The firm has a market capitalization of $71.60 billion, a price-to-earnings ratio of 26.58, a P/E/G ratio of 1.41 and a beta of 1.24. The firm has a 50 day simple moving average of $569.74 and a two-hundred day simple moving average of $620.98.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter in the prior year, the firm earned $6.43 earnings per share. Cummins's quarterly revenue was up 9.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Cummins Inc. will post 30.13 earnings per share for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were paid a dividend of $2.20 per share. This is a boost from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Friday, August 21st. Cummins's payout ratio is presently 44.97%.

Cummins Profile

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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