Cummins Inc. $CMI Stock Sold by Ferguson Wellman Capital Management Inc.

Key Points

• Ferguson Wellman Capital Management cut its Cummins stake by 31.7% in the third quarter, selling 31,534 shares and retaining 67,977 shares valued at approximately $32.7 million. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly EPS of $6.73, below the $7.21 analyst consensus, while revenue rose 9.4% year over year to $9.46 billion. The company increased its quarterly dividend to $2.20, equivalent to an annualized yield of about 1.7%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $724.29, compared with the stock’s reported trading price of $530.55.

Ferguson Wellman Capital Management Inc. reduced its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 31.7% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 67,977 shares of the company's stock after selling 31,534 shares during the quarter. Ferguson Wellman Capital Management Inc.'s holdings in Cummins were worth $32,687,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Valmark Advisers Inc. raised its position in shares of Cummins by 1.9% in the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock worth $472,000 after buying an additional 16 shares during the period. Guardian Partners Inc. raised its holdings in shares of Cummins by 1.0% during the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after buying an additional 16 shares during the period. Nicolet Advisory Services LLC raised its stake in shares of Cummins by 1.6% during the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after purchasing an additional 17 shares during the period. Uhlmann Price Securities LLC increased its stake in Cummins by 2.4% during the 1st quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after buying an additional 17 shares during the period. Finally, Legacy Financial Advisors Inc. lifted its stake in shares of Cummins by 2.0% in the second quarter. Legacy Financial Advisors Inc. now owns 955 shares of the company's stock worth $681,000 after acquiring an additional 19 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Price Performance

Shares of CMI traded up $2.23 during mid-day trading on Monday, hitting $530.55. The company's stock had a trading volume of 259,184 shares, compared to its average volume of 982,587. The stock has a market capitalization of $73.04 billion, a price-to-earnings ratio of 27.10, a PEG ratio of 1.39 and a beta of 1.24. Cummins Inc. has a fifty-two week low of $400.72 and a fifty-two week high of $737.76. The firm has a 50-day moving average price of $578.71 and a 200 day moving average price of $621.43. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The company had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the previous year, the firm earned $6.43 earnings per share. The business's revenue was up 9.4% compared to the same quarter last year. On average, research analysts predict that Cummins Inc. will post 30.13 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were paid a $2.20 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a yield of 1.7%. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is 44.97%.

Insiders Place Their Bets

In related news, VP Earl Newsome sold 698 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the transaction, the vice president directly owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Analyst Ratings Changes

Several research firms have recently weighed in on CMI. Zacks Research downgraded shares of Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Evercore lowered their price objective on Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. Morgan Stanley upped their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. DA Davidson lifted their target price on Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Finally, Sanford C. Bernstein restated a "market perform" rating and set a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $724.29.

Cummins Company 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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