Cummins Inc. $CMI Stock Holdings Lessened by HighTower Advisors LLC

Key Points

• HighTower Advisors cut its Cummins stake by 8.9% in the fourth quarter, selling 39,199 shares and leaving it with about 401,424 shares valued at roughly $204.9 million.
• Cummins reported strong quarterly results, posting $6.15 EPS on revenue of $8.40 billion, both slightly above analyst expectations, while revenue rose 2.7% year over year.
• The company also announced a quarterly dividend of $2.00 per share, and analysts remain generally positive with a consensus Moderate Buy rating and an average price target of $677.87.

HighTower Advisors LLC reduced its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 8.9% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 401,424 shares of the company's stock after selling 39,199 shares during the quarter. HighTower Advisors LLC owned approximately 0.29% of Cummins worth $204,907,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of CMI. Thompson Investment Management Inc. bought a new position in shares of Cummins in the 4th quarter worth about $26,000. Activest Wealth Management lifted its position in shares of Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares during the last quarter. Flagship Wealth Advisors LLC bought a new position in shares of Cummins in the 3rd quarter worth about $28,000. Ares Financial Consulting LLC bought a new position in shares of Cummins in the 4th quarter worth about $29,000. Finally, Osterweis Capital Management Inc. bought a new position in shares of Cummins in the 2nd quarter worth about $31,000. 83.46% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts recently weighed in on CMI shares. UBS Group set a $565.00 price objective on shares of Cummins and gave the company a "neutral" rating in a research report on Friday, February 6th. Barclays lifted their price objective on shares of Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Wall Street Zen downgraded shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Wells Fargo & Company lifted their price objective on shares of Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Finally, Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the company a "market perform" rating in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $677.87.

Cummins Stock Down 2.8%

CMI stock opened at $677.20 on Tuesday. Cummins Inc. has a 52 week low of $307.90 and a 52 week high of $718.08. The company has a market capitalization of $93.45 billion, a price-to-earnings ratio of 35.14, a price-to-earnings-growth ratio of 1.76 and a beta of 1.27. The firm's 50-day moving average is $603.93 and its two-hundred day moving average is $557.42. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the previous year, the firm earned $5.96 EPS. Cummins's revenue was up 2.7% on a year-over-year basis. On average, analysts forecast that Cummins Inc. will post 28.39 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, May 22nd. Cummins's payout ratio is 41.52%.

Insider Activity at Cummins

In other Cummins news, insider Brett Michael Merritt sold 701 shares of the business's 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 sale, the insider directly owned 10,404 shares in the company, valued at approximately $7,165,755. The trade was a 6.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Donald G. Jackson sold 730 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, the vice president owned 8,316 shares in the company, valued at $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,397 shares of company stock worth $14,465,833 in the last three months. 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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