Foster & Motley Inc. Sells 1,890 Shares of Cummins Inc. $CMI

Key Points

• Foster & Motley Inc. cut its Cummins stake by 8.3% in the first quarter, selling 1,890 shares and leaving it with 20,755 shares valued at about $11.17 million.
• Cummins reported strong quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above expectations. The company also raised its quarterly dividend to $2.00 per share, or $8.00 annualized.
• Analysts remain broadly positive on CMI, with a consensus “Moderate Buy” rating and an average price target of $731.86. Several firms recently lifted targets, including Wells Fargo to $874 and Argus to $770.

Foster & Motley Inc. lowered its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 8.3% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 20,755 shares of the company's stock after selling 1,890 shares during the quarter. Foster & Motley Inc.'s holdings in Cummins were worth $11,167,000 as of its most recent SEC filing.

Several other hedge funds also recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. increased its position in shares of Cummins by 10,317.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after buying an additional 2,434,876 shares in the last quarter. Norges Bank bought a new position in Cummins during the fourth quarter worth about $863,441,000. Boston Partners acquired a new position in Cummins in the third quarter valued at about $473,471,000. London Co. of Virginia acquired a new position in Cummins in the third quarter valued at about $231,732,000. Finally, SG Americas Securities LLC increased its holdings in shares of Cummins by 257.9% in the first quarter. SG Americas Securities LLC now owns 736,670 shares of the company's stock worth $396,343,000 after acquiring an additional 530,812 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, VP Jennifer Mary Bush sold 5,000 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the transaction, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This represents a 29.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Brett Michael Merritt sold 701 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the transaction, the insider owned 10,404 shares of the company's stock, valued at $7,165,755. The trade was a 6.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,579 shares of company stock valued at $9,377,684 in the last quarter. Company insiders own 0.30% of the company's stock.

Cummins Stock Up 4.6%

CMI stock opened at $727.12 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The stock has a market capitalization of $100.33 billion, a P/E ratio of 37.73, a P/E/G ratio of 1.70 and a beta of 1.23. Cummins Inc. has a fifty-two week low of $319.37 and a fifty-two week high of $737.76. The business has a 50-day moving average of $670.68 and a 200-day moving average of $597.08.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating 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 analysts' expectations of $8.37 billion. During the same quarter in the previous year, the business posted $5.96 EPS. The business's quarterly revenue was up 2.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Cummins Inc. will post 29.31 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. Investors of record on Friday, May 22nd were issued a dividend of $2.00 per share. The ex-dividend date was Friday, May 22nd. This represents a $8.00 annualized dividend and a yield of 1.1%. Cummins's dividend payout ratio is presently 41.52%.

Analysts Set New Price Targets

CMI has been the topic of a number of research analyst reports. Wells Fargo & Company raised their price target on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Argus lifted their price target on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. JPMorgan Chase & Co. upped their price target on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings downgraded shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $731.86.

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.

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.