First Horizon Corp Sells 13,091 Shares of Cummins Inc. $CMI

Key Points

• First Horizon Corp cut its stake in Cummins by 66.3%, selling 13,091 shares and leaving it with 6,662 shares valued at $3.401 million as of the latest 13F filing.
• Significant insider selling has occurred recently—VPs Earl Newsome and Amy Rochelle Davis sold shares and insiders have disposed of 31,195 shares worth about $18.4 million in the past 90 days—while institutional investors own 83.46% of the stock and insiders hold 0.30%.
• Cummins beat quarterly expectations with EPS of $5.81 versus $5.17 and revenue of $8.54 billion, and analysts hold a consensus rating of Moderate Buy with an average price target of $598.47.

First Horizon Corp cut its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 66.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,662 shares of the company's stock after selling 13,091 shares during the quarter. First Horizon Corp's holdings in Cummins were worth $3,401,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of the business. Fisher Asset Management LLC increased its position in Cummins by 2.8% during the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after purchasing an additional 91,956 shares during the period. Dimensional Fund Advisors LP increased its position in Cummins by 0.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,537,347 shares of the company's stock valued at $649,280,000 after purchasing an additional 7,372 shares during the period. Raymond James Financial Inc. increased its position in Cummins by 4.5% during the 3rd quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company's stock valued at $640,090,000 after purchasing an additional 64,822 shares during the period. Bank of New York Mellon Corp increased its position in Cummins by 50.8% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock valued at $612,715,000 after purchasing an additional 488,430 shares during the period. Finally, Boston Partners purchased a new position in Cummins during the 3rd quarter valued at $473,471,000. 83.46% of the stock is owned by institutional investors.

Insider Activity

In other news, VP Earl Newsome sold 1,300 shares of Cummins stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $583.67, for a total transaction of $758,771.00. Following the completion of the transaction, the vice president directly owned 3,389 shares in the company, valued at approximately $1,978,057.63. This trade represents a 27.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 4,054 shares of Cummins stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the transaction, the vice president owned 15,807 shares of the company's stock, valued at $8,873,101.38. The trade was a 20.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 31,195 shares of company stock valued at $18,397,489. 0.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several brokerages have commented on CMI. Wall Street Zen lowered shares of Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the stock a "market perform" rating in a report on Friday, February 6th. Morgan Stanley restated an "overweight" rating and issued a $675.00 price objective on shares of Cummins in a report on Friday, February 6th. Wolfe Research lowered shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective for the company. in a report on Monday, January 26th. Finally, Argus set a $696.00 price objective on shares of Cummins in a report on Tuesday, February 10th. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $598.47.

Cummins Stock Performance

Shares of CMI opened at $626.91 on Monday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. Cummins Inc. has a one year low of $269.24 and a one year high of $628.00. The company has a 50-day simple moving average of $571.31 and a two-hundred day simple moving average of $523.68. The firm has a market capitalization of $86.62 billion, a PE ratio of 30.55, a price-to-earnings-growth ratio of 1.98 and a beta of 1.14.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. During the same period last year, the business earned $5.16 earnings per share. The business's revenue was up 1.1% on a year-over-year basis. On average, analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date was Friday, February 20th. Cummins's dividend payout ratio (DPR) is presently 38.99%.

Cummins Company 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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