Kerusso Capital Management LLC Raises Stock Position in Cummins Inc. $CMI

Key Points

• Kerusso Capital Management LLC boosted its position in Cummins by 31.2% in Q4 and now owns 7,021 shares valued at about $3.58 million.
• Cummins beat quarterly estimates with $5.81 EPS (vs. $5.17 expected) and revenue of $8.54B, and Wall Street currently assigns a "Moderate Buy" consensus with an average target of $600.27 (some firms as high as $710).
• Insiders have been net sellers recently (31,195 shares, roughly $18.4M over 90 days) while institutional ownership stands at 83.46%; the company pays a quarterly dividend of $2.00 (annualized $8.00, ~1.2% yield).

Kerusso Capital Management LLC boosted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 31.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,021 shares of the company's stock after purchasing an additional 1,668 shares during the period. Kerusso Capital Management LLC's holdings in Cummins were worth $3,584,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of CMI. Thompson Investment Management Inc. purchased a new position in Cummins during the fourth quarter worth about $26,000. Flagship Wealth Advisors LLC purchased a new position in Cummins during the third quarter worth about $28,000. Osterweis Capital Management Inc. purchased a new position in Cummins during the second quarter worth about $31,000. Holos Integrated Wealth LLC purchased a new position in Cummins during the fourth quarter worth about $32,000. Finally, Palouse Capital Management Inc. purchased a new position in Cummins during the fourth quarter worth about $33,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Trading Up 2.9%

Shares of CMI stock opened at $657.49 on Friday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. The stock has a market capitalization of $90.84 billion, a P/E ratio of 32.04, a price-to-earnings-growth ratio of 2.02 and a beta of 1.14. The company has a 50 day moving average price of $575.23 and a 200 day moving average price of $528.25. Cummins Inc. has a fifty-two week low of $282.77 and a fifty-two week high of $663.01.

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

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were issued a $2.00 dividend. The ex-dividend date was Friday, February 20th. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. Cummins's payout ratio is 38.99%.

Insider Transactions at Cummins

In related news, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $584.93, for a total value of $2,497,651.10. Following the completion of the transaction, the vice president owned 15,130 shares in the company, valued at approximately $8,849,990.90. The trade was a 22.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Donald G. Jackson sold 1,600 shares of Cummins stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the completion of the transaction, the vice president owned 7,214 shares of the company's stock, valued at $4,329,337.82. This trade represents a 18.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 31,195 shares of company stock valued at $18,397,489. 0.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have commented on CMI shares. Robert W. Baird set a $580.00 target price on shares of Cummins in a research note on Friday, February 6th. Sanford C. Bernstein set a $600.00 price target on shares of Cummins and gave the company a "market perform" rating in a research report on Friday, February 6th. Argus set a $696.00 price target on shares of Cummins in a research report on Tuesday, February 10th. Citigroup lifted their price target on shares of Cummins from $630.00 to $710.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Finally, 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. Eleven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $600.27.

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.

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