Cummins Inc. $CMI Stock Position Lessened by Brown Advisory Inc.

Key Points

• Brown Advisory Inc. reduced its Cummins stake by 11.6% in the fourth quarter, selling 6,443 shares and leaving it with 49,185 shares valued at about $25.1 million.
• Cummins beat earnings expectations in its latest quarterly report, posting $6.15 EPS versus the $5.63 consensus, while revenue of $8.40 billion slightly topped estimates and rose 2.7% year over year.
• Analysts remain positive on the stock, with an average rating of “Moderate Buy” and an average price target of $726.14, even as some insiders recently sold shares.

Brown Advisory Inc. decreased its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 11.6% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 49,185 shares of the company's stock after selling 6,443 shares during the quarter. Brown Advisory Inc.'s holdings in Cummins were worth $25,106,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently modified their holdings of the company. Thompson Investment Management Inc. acquired a new stake in shares of Cummins in the fourth quarter valued at $26,000. Activest Wealth Management lifted its holdings in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after buying an additional 43 shares during the period. Wellington Shields Capital Management LLC acquired a new stake in shares of Cummins in the fourth quarter valued at $27,000. Ares Financial Consulting LLC acquired a new stake in shares of Cummins in the fourth quarter valued at $29,000. Finally, Osterweis Capital Management Inc. acquired a new stake in shares of Cummins in the second quarter valued at $31,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

Shares of CMI stock opened at $679.66 on Tuesday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. Cummins Inc. has a fifty-two week low of $307.90 and a fifty-two week high of $718.08. The stock's 50-day moving average is $651.02 and its two-hundred day moving average is $585.26. The firm has a market cap of $93.79 billion, a P/E ratio of 35.27, a PEG ratio of 1.61 and a beta of 1.24.

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

Cummins Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were issued a $2.00 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's dividend payout ratio (DPR) is 41.52%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on CMI. Wells Fargo & Company upped their target price on Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings downgraded Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. upped their target price on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cummins in a report on Friday, May 22nd. Finally, Citigroup upped their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $726.14.

Insider Transactions at Cummins

In other Cummins news, insider Brett Michael Merritt sold 701 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the sale, the insider owned 10,404 shares in the company, valued at approximately $7,165,755. This trade represents a 6.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Nathan R. Stoner sold 607 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $694.06, for a total value of $421,294.42. Following the completion of the sale, the vice president owned 9,447 shares of the company's stock, valued at $6,556,784.82. This represents a 6.04% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 13,579 shares of company stock worth $9,377,684. Insiders own 0.30% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.