Jefferies Financial Group Inc. Invests $11.13 Million in Cummins Inc. $CMI

Key Points

• Jefferies established a new stake in Cummins of 26,350 shares valued at approximately $11.13 million in the third quarter.
• Company insiders have been net sellers, disposing of 31,195 shares worth about $18.4 million in the last 90 days, leaving insiders with roughly 0.41% ownership.
• Cummins beat quarterly estimates with $5.81 EPS vs. $5.17 expected and $8.54B revenue, and analysts hold a consensus rating of "Moderate Buy" with an average target near $588.93.

Jefferies Financial Group Inc. purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 26,350 shares of the company's stock, valued at approximately $11,129,000.

Other institutional investors have also made changes to their positions in the company. Flagship Wealth Advisors LLC bought a new position in Cummins during the 3rd quarter worth $28,000. Osterweis Capital Management Inc. acquired a new position in Cummins in the 2nd quarter valued at $31,000. Guerra Advisors Inc bought a new stake in shares of Cummins during the 3rd quarter valued at $36,000. Salomon & Ludwin LLC lifted its position in shares of Cummins by 1,333.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 86 shares of the company's stock valued at $37,000 after acquiring an additional 80 shares during the period. Finally, Tripletail Wealth Management LLC acquired a new stake in shares of Cummins during the 3rd quarter worth $39,000. 83.46% of the stock is currently owned by institutional investors.

Insider Activity at Cummins

In other Cummins news, VP Donald G. Jackson sold 1,600 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the sale, the vice president owned 7,214 shares in the company, valued at $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director William I. Miller sold 18,107 shares of the business's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the sale, the director directly owned 34,243 shares in the company, valued at approximately $20,446,495.30. The trade was a 34.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 31,195 shares of company stock worth $18,397,489 in the last ninety days. Insiders own 0.41% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Robert W. Baird set a $580.00 price target on Cummins in a research report on Friday, February 6th. Morgan Stanley reaffirmed an "overweight" rating and set a $675.00 price objective on shares of Cummins in a research report on Friday, February 6th. Raymond James Financial raised 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 target price on shares of Cummins and gave the company a "neutral" rating in a research report on Friday, February 6th. Finally, Truist Financial reaffirmed a "buy" rating and set a $703.00 price target (up from $653.00) on shares of Cummins in a report on Friday, February 6th. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $588.93.

Cummins Price Performance

Shares of CMI stock opened at $539.59 on Monday. The business has a fifty day simple moving average of $570.78 and a 200 day simple moving average of $491.34. The company has a market cap of $74.55 billion, a P/E ratio of 26.30, a P/E/G ratio of 1.71 and a beta of 1.12. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $617.98.

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 analysts' consensus estimates of $5.17 by $0.64. The firm had revenue of $8.54 billion for the quarter, compared to analysts' expectations of $8.09 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business's revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $5.16 earnings per share. On average, sell-side analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.5%. 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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