KG Capital Management Buys 3,493 Shares of Cummins Inc. $CMI

Key Points

• KG Capital Management nearly doubled its Cummins stake in the third quarter, purchasing 3,493 additional shares for a total of 7,238 shares valued at approximately $3.74 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings of $6.73 per share fell short of the $7.21 consensus forecast.
• The stock opened at $525.39, while analysts maintain a “Moderate Buy” consensus with an average price target of $708.18. Cummins also declared a quarterly dividend of $2.20 per share, representing a 1.7% yield.

KG Capital Management increased its stake in Cummins Inc. (NYSE:CMI - Free Report) by 93.3% during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 7,238 shares of the company's stock after acquiring an additional 3,493 shares during the period. Cummins makes up 2.4% of KG Capital Management's investment portfolio, making the stock its 9th largest position. KG Capital Management's holdings in Cummins were worth $3,739,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Mather Group LLC. boosted its holdings in Cummins by 702.9% in the third quarter. Mather Group LLC. now owns 26,631 shares of the company's stock valued at $13,757,000 after acquiring an additional 23,314 shares during the last quarter. Hudock Inc. grew its position in Cummins by 182.9% during the third quarter. Hudock Inc. now owns 2,470 shares of the company's stock valued at $1,276,000 after acquiring an additional 1,597 shares during the period. First Pacific Financial increased its stake in Cummins by 2.7% during the third quarter. First Pacific Financial now owns 2,469 shares of the company's stock worth $1,246,000 after acquiring an additional 66 shares during the last quarter. Strategy Asset Managers LLC acquired a new stake in Cummins during the third quarter worth about $691,000. Finally, Tempus Wealth Planning LLC raised its holdings in shares of Cummins by 28.2% in the 3rd quarter. Tempus Wealth Planning LLC now owns 582 shares of the company's stock worth $301,000 after purchasing an additional 128 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, VP Earl Newsome sold 698 shares of the business's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the transaction, the vice president directly owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.30% of the company's stock.

Cummins Trading Down 0.7%

NYSE:CMI opened at $525.39 on Thursday. The business's 50-day moving average is $560.36 and its two-hundred day moving average is $620.42. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. Cummins Inc. has a 12 month low of $405.82 and a 12 month high of $737.76. The firm has a market capitalization of $72.33 billion, a PE ratio of 26.85, a price-to-earnings-growth ratio of 1.39 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the prior year, the firm earned $6.43 EPS. The company's revenue for the quarter was up 9.4% compared to the same quarter last year. Research analysts predict that Cummins Inc. will post 30.10 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 annualized dividend and a yield of 1.7%. Cummins's payout ratio is 44.97%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. Evercore cut their price objective on Cummins from $845.00 to $782.00 and set an "outperform" rating on the stock in a report on Tuesday, August 11th. Sanford C. Bernstein reiterated a "market perform" rating and set a $700.00 target price on shares of Cummins in a report on Wednesday, August 5th. Bank of America dropped their target price on shares of Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Morgan Stanley increased their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Finally, UBS Group cut their price target on shares of Cummins from $835.00 to $741.00 and set a "buy" rating on the stock in a report on Wednesday, September 30th. Thirteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $708.18.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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