Juno Financial Group LLC Buys Shares of 1,731 Cummins Inc. $CMI

Key Points

• Juno Financial Group bought a new stake of 1,731 shares of Cummins in Q4, valued at about $883,000.
• Cummins beat quarterly expectations with $5.81 EPS versus $5.17 expected and $8.54 billion in revenue (vs. $8.09 billion), supporting a market cap of about $88.4 billion and a PE of 31.16.
• Institutional ownership is high at 83.46% with several large funds adding positions, while insiders sold roughly 31,195 shares (~$18.4M) recently; the company pays a $2.00 quarterly dividend ($8.00 annualized, ~1.3% yield).

Juno Financial Group LLC bought a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 4th quarter, according to its most recent disclosure with the SEC. The fund bought 1,731 shares of the company's stock, valued at approximately $883,000.

A number of other institutional investors and hedge funds have also made changes to their positions in CMI. Boston Partners acquired a new position in shares of Cummins during the third quarter worth about $473,471,000. London Co. of Virginia acquired a new position in shares of Cummins during the third quarter worth about $231,732,000. Bank of New York Mellon Corp grew its position in shares of Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock worth $612,715,000 after buying an additional 488,430 shares in the last quarter. Nordea Investment Management AB grew its position in shares of Cummins by 103.8% during the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock worth $280,397,000 after buying an additional 278,350 shares in the last quarter. Finally, Merewether Investment Management LP acquired a new position in shares of Cummins during the third quarter worth about $91,147,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Price Performance

Cummins stock opened at $639.49 on Thursday. Cummins Inc. has a 12 month low of $282.77 and a 12 month high of $650.37. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. The business has a 50 day simple moving average of $573.84 and a 200-day simple moving average of $527.35. The stock has a market capitalization of $88.36 billion, a PE ratio of 31.16, a price-to-earnings-growth ratio of 2.02 and a beta of 1.14.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $5.81 EPS for the quarter, topping the consensus estimate of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business had revenue of $8.54 billion during the quarter, compared to analysts' expectations of $8.09 billion. During the same quarter in the prior year, the business earned $5.16 earnings per share. The company's quarterly revenue was up 1.1% compared to the same quarter last year. Equities analysts predict that Cummins Inc. will post 26.03 earnings per share for the current year.

Cummins Announces Dividend

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 dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date was Friday, February 20th. Cummins's dividend payout ratio is 38.99%.

Insider Activity

In related news, VP Earl Newsome sold 1,300 shares of the company's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $583.67, for a total transaction of $758,771.00. Following the transaction, the vice president owned 3,389 shares of the company's stock, valued at $1,978,057.63. This represents a 27.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Amy Rochelle Davis sold 4,054 shares of the company's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total value of $2,275,672.36. Following the transaction, the vice president directly owned 15,807 shares in the company, valued at $8,873,101.38. This represents a 20.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 31,195 shares of company stock valued at $18,397,489 over the last three months. 0.30% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CMI shares. Sanford C. Bernstein set a $600.00 target price on Cummins and gave the stock a "market perform" rating in a research note on Friday, February 6th. Wells Fargo & Company boosted their target price on Cummins from $630.00 to $693.00 and gave the stock an "overweight" rating in a research note on Monday, April 13th. Truist Financial boosted their target price on Cummins from $703.00 to $730.00 and gave the stock a "buy" rating in a research note on Monday. Robert W. Baird set a $580.00 target price on Cummins in a research note on Friday, February 6th. Finally, Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. Eleven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $600.27.

About Cummins

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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