Jefferies Financial Group Inc. Lowers Stock Holdings in Cummins Inc. $CMI

Key Points

• Jefferies Financial Group sharply reduced its Cummins stake by 74.9% in the fourth quarter, selling 19,733 shares and leaving it with 6,617 shares worth about $3.38 million.
• Cummins reported strong quarterly results, posting EPS of $6.15 versus the $5.63 estimate and revenue of $8.40 billion, with shares up 4.5% in Wednesday trading.
• The company also announced a quarterly dividend of $2.00 per share payable June 4, and analysts remain constructive, with a consensus rating of Moderate Buy and an average price target of $700.50.

Jefferies Financial Group Inc. cut its stake in Cummins Inc. (NYSE:CMI - Free Report) by 74.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 6,617 shares of the company's stock after selling 19,733 shares during the period. Jefferies Financial Group Inc.'s holdings in Cummins were worth $3,378,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. MQS Management LLC purchased a new position in Cummins in the fourth quarter valued at $1,066,000. Americana Partners LLC boosted its holdings in Cummins by 36.5% in the fourth quarter. Americana Partners LLC now owns 1,430 shares of the company's stock valued at $730,000 after purchasing an additional 382 shares during the period. Legato Capital Management LLC purchased a new position in Cummins in the fourth quarter valued at $576,000. Evoke Wealth LLC boosted its holdings in Cummins by 11.0% in the fourth quarter. Evoke Wealth LLC now owns 1,181 shares of the company's stock valued at $603,000 after purchasing an additional 117 shares during the period. Finally, Ignite Planners LLC boosted its holdings in Cummins by 6.1% in the fourth quarter. Ignite Planners LLC now owns 606 shares of the company's stock valued at $309,000 after purchasing an additional 35 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Up 4.5%

Cummins stock opened at $668.64 on Wednesday. Cummins Inc. has a 1-year low of $307.90 and a 1-year high of $718.08. 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 $92.27 billion, a PE ratio of 34.70, a P/E/G ratio of 1.58 and a beta of 1.27. The stock's fifty day moving average is $616.71 and its two-hundred day moving average is $566.52.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same period last year, the firm earned $5.96 earnings per share. Cummins's quarterly revenue was up 2.7% on a year-over-year basis. On average, sell-side analysts expect that Cummins Inc. will post 28.93 EPS for the current fiscal year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be paid a $2.00 dividend. The ex-dividend date is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's dividend payout ratio (DPR) is currently 41.52%.

Insider Buying and Selling

In other news, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, the vice president owned 8,316 shares in the company, valued at approximately $5,912,010.72. The trade was a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Bonnie J. Fetch sold 652 shares of Cummins stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $700.19, for a total value of $456,523.88. Following the sale, the executive vice president owned 11,679 shares in the company, valued at $8,177,519.01. This trade represents a 5.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 17,633 shares of company stock valued at $11,653,357 over the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Citigroup lifted their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Argus set a $696.00 target price on Cummins in a report on Tuesday, February 10th. Raymond James Financial lifted their target price on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday. Robert W. Baird set a $700.00 target price on Cummins in a report on Wednesday, May 6th. Finally, Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and a consensus target price of $700.50.

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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