Forum Financial Management LP Sells 1,565 Shares of Cummins Inc. $CMI

Key Points

• Forum Financial Management cut its Cummins stake sharply in the first quarter, selling 1,565 shares and reducing its holding by 80.5% to just 378 shares worth about $203,000.
• Cummins posted better-than-expected quarterly results, reporting EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, slightly above Wall Street forecasts.
• Analysts remain cautiously positive on the stock, with a consensus rating of “Moderate Buy” and an average target price of $731.86, even as some recent insider sales were disclosed.

Forum Financial Management LP lessened its stake in Cummins Inc. (NYSE:CMI - Free Report) by 80.5% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 378 shares of the company's stock after selling 1,565 shares during the quarter. Forum Financial Management LP's holdings in Cummins were worth $203,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Thompson Investment Management Inc. bought a new position in shares of Cummins during the 4th quarter valued at about $26,000. Activest Wealth Management increased 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 worth $26,000 after purchasing an additional 43 shares during the last quarter. Wellington Shields Capital Management LLC bought a new stake in shares of Cummins in the fourth quarter worth about $27,000. Birchwood Financial Partners Inc. purchased a new stake in shares of Cummins in the fourth quarter worth about $28,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Cummins in the fourth quarter worth about $28,000. Institutional investors own 83.46% of the company's stock.

Analyst Ratings Changes

CMI has been the subject of a number of recent research reports. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. UBS Group reaffirmed a "buy" rating on shares of Cummins in a research note on Wednesday, June 17th. JPMorgan Chase & Co. increased their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Citigroup boosted their target price on shares of Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Finally, Wall Street Zen cut shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. One research 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 company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $731.86.

Insider Activity

In related news, CAO Nicole Lamb-Hale sold 2,408 shares of the business's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total transaction of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares in the company, valued at $9,652,328.56. The trade was a 14.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the completion of the transaction, the vice president directly owned 8,316 shares in the company, valued at $5,912,010.72. This trade represents a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is currently owned by corporate insiders.

Cummins Trading Down 4.4%

Shares of CMI opened at $681.59 on Thursday. The company's fifty day simple moving average is $676.64 and its 200-day simple moving average is $602.12. The company has a market cap of $94.05 billion, a P/E ratio of 35.37, a P/E/G ratio of 1.74 and a beta of 1.22. 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 Inc. has a twelve month low of $325.25 and a twelve month high of $737.76.

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. The firm had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the previous year, the company earned $5.96 EPS. As a group, analysts expect that Cummins Inc. will post 29.31 EPS for the current 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 given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's payout ratio is 41.52%.

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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