Diversified Trust Co Buys 2,182 Shares of Cummins Inc. $CMI

Key Points

• Diversified Trust Co increased its stake in Cummins by 26.8% in the first quarter, buying 2,182 additional shares and bringing its total to 10,314 shares worth about $5.55 million.
• Insiders have been selling Cummins stock recently, including VP Marvin Boakye and insider Brett Michael Merritt, with total insider sales over the last 90 days amounting to $9.38 million.
• Analysts remain generally positive on Cummins, with a Moderate Buy consensus and an average price target of $731.86; the company also beat quarterly earnings expectations and continues to pay a $2.00 quarterly dividend.

Diversified Trust Co lifted its position in Cummins Inc. (NYSE:CMI - Free Report) by 26.8% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,314 shares of the company's stock after buying an additional 2,182 shares during the quarter. Diversified Trust Co's holdings in Cummins were worth $5,549,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Thompson Investment Management Inc. bought a new position in Cummins in the 4th quarter valued at $26,000. Activest Wealth Management raised its position in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares in the last quarter. Wellington Shields Capital Management LLC bought a new stake in Cummins during the fourth quarter valued at $27,000. Birchwood Financial Partners Inc. purchased a new position in Cummins during the fourth quarter worth about $28,000. Finally, Kemnay Advisory Services Inc. bought a new position in Cummins in the 4th quarter worth about $28,000. 83.46% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Cummins news, VP Marvin Boakye sold 3,481 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the sale, the vice president owned 8,508 shares in the company, valued at approximately $5,784,589.20. The trade was a 29.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 transaction of $482,813.75. Following the completion of the transaction, the insider owned 10,404 shares in the company, valued at $7,165,755. This represents a 6.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

CMI has been the subject of several recent analyst reports. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Robert W. Baird set a $700.00 target price on shares of Cummins in a research report on Wednesday, May 6th. Zacks Research raised shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Morgan Stanley lifted their price objective on shares of Cummins from $675.00 to $752.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Finally, Raymond James Financial upped their target price on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $731.86.

Cummins Stock Performance

NYSE CMI opened at $716.50 on Friday. The company has a 50-day simple moving average of $663.00 and a two-hundred day simple moving average of $590.68. Cummins Inc. has a 12-month low of $307.90 and a 12-month high of $737.76. The firm has a market cap of $98.87 billion, a price-to-earnings ratio of 37.18, a PEG ratio of 1.75 and a beta of 1.23. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data 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 return on equity of 25.25% and a net margin of 7.89%.The firm had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter in the previous year, the business earned $5.96 earnings per share. The company's quarterly revenue was up 2.7% on a year-over-year basis. On average, equities analysts forecast that Cummins Inc. will post 29.44 EPS for the current year.

Cummins Dividend Announcement

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

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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