GLOBALT Investments LLC GA Makes New $2.91 Million Investment in Cummins Inc. $CMI

Key Points

• GLOBALT Investments LLC GA disclosed a new fourth-quarter position in Cummins, buying 5,701 shares worth about $2.91 million.
• Insiders have been selling: VP Marvin Boakye and VP Jennifer Mary Bush recently sold shares, and insiders have sold 22,397 shares total over the last 90 days.
• Cummins beat quarterly earnings estimates with EPS of $6.15 versus $5.63 expected, and it also announced a $2.00 quarterly dividend payable June 4.

GLOBALT Investments LLC GA bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm bought 5,701 shares of the company's stock, valued at approximately $2,910,000.

Other institutional investors have also bought and sold shares of the company. Thompson Investment Management Inc. acquired a new stake in shares of Cummins during the 4th quarter worth approximately $26,000. Activest Wealth Management increased its holdings in shares of Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares during the last quarter. Ares Financial Consulting LLC acquired a new stake in shares of Cummins during the 4th quarter worth approximately $29,000. Holos Integrated Wealth LLC acquired a new stake in shares of Cummins during the 4th quarter worth approximately $32,000. Finally, Palouse Capital Management Inc. acquired a new stake in shares of Cummins during the 4th quarter worth approximately $33,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, VP Marvin Boakye sold 3,481 shares of the firm's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the transaction, the vice president owned 8,508 shares of the company's stock, valued at approximately $5,784,589.20. This trade represents a 29.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Jennifer Mary Bush sold 5,000 shares of Cummins stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the sale, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This trade represents a 29.44% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 22,397 shares of company stock worth $14,465,833. 0.30% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CMI. Raymond James Financial lifted their target price on shares of Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a report on Monday, February 9th. UBS Group set a $565.00 price target on shares of Cummins and gave the company a "neutral" rating in a research report on Friday, February 6th. Weiss Ratings cut shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Robert W. Baird set a $700.00 target price on shares of Cummins in a report on Wednesday, May 6th. Finally, Sanford C. Bernstein set a $600.00 price target on shares of Cummins and gave the stock a "market perform" rating in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $677.87.

Cummins Trading Up 0.3%

Shares of CMI opened at $698.36 on Monday. 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 cap of $96.37 billion, a price-to-earnings ratio of 36.24, a price-to-earnings-growth ratio of 1.76 and a beta of 1.27. The firm has a 50 day simple moving average of $601.51 and a 200-day simple moving average of $555.57. Cummins Inc. has a 1-year low of $307.90 and a 1-year high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm's quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the company earned $5.96 EPS. Equities analysts forecast that Cummins Inc. will post 28.39 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's dividend payout ratio (DPR) is currently 41.52%.

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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