Lecap Asset Management Ltd. Increases Stake in Cummins Inc. $CMI

Key Points

• Lecap Asset Management increased its stake in Cummins by 78.7% in Q4 to 4,217 shares valued at $2.15M, representing about 0.9% of Lecap’s portfolio and its 13th-largest holding.
• Cummins beat quarterly estimates with EPS $5.81 vs. $5.17 expected and revenue of $8.54B, and its stock is trading near a 12‑month high (~$626.91) with a market cap of about $86.6B.
• The company pays a quarterly dividend of $2.00 ($8.00 annualized, ~1.3% yield); insiders have sold roughly 31,195 shares (~$18.4M) in the past 90 days while institutional ownership is about 83.46%.

Lecap Asset Management Ltd. grew its stake in Cummins Inc. (NYSE:CMI - Free Report) by 78.7% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 4,217 shares of the company's stock after buying an additional 1,857 shares during the quarter. Cummins accounts for approximately 0.9% of Lecap Asset Management Ltd.'s portfolio, making the stock its 13th biggest position. Lecap Asset Management Ltd.'s holdings in Cummins were worth $2,153,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Thompson Investment Management Inc. purchased a new position in shares of Cummins in the 4th quarter valued at about $26,000. Flagship Wealth Advisors LLC acquired a new stake in shares of Cummins during the 3rd quarter worth about $28,000. Osterweis Capital Management Inc. purchased a new stake in Cummins during the second quarter worth approximately $31,000. Holos Integrated Wealth LLC purchased a new stake in Cummins during the fourth quarter worth approximately $32,000. Finally, Palouse Capital Management Inc. purchased a new stake in Cummins during the fourth quarter worth approximately $33,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Up 3.0%

Shares of CMI stock opened at $626.91 on Friday. The business's 50 day moving average is $571.31 and its two-hundred day moving average is $522.99. Cummins Inc. has a twelve month low of $269.24 and a twelve month high of $628.00. The company has a market capitalization of $86.61 billion, a P/E ratio of 30.55, a price-to-earnings-growth ratio of 1.93 and a beta of 1.14. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating 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 company had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.09 billion. During the same period last year, the business posted $5.16 EPS. The company's revenue was up 1.1% on a year-over-year basis. Equities analysts forecast that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Friday, February 20th were paid a $2.00 dividend. 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 (DPR) is 38.99%.

Insider Buying and Selling

In other Cummins news, VP Earl Newsome sold 1,300 shares of Cummins stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $583.67, for a total value of $758,771.00. Following the transaction, the vice president directly owned 3,389 shares in the company, valued at approximately $1,978,057.63. This trade represents a 27.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Amy Rochelle Davis sold 4,054 shares of Cummins stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total value of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares in the company, valued at $8,873,101.38. This trade represents a 20.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 31,195 shares of company stock worth $18,397,489. 0.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Argus set a $696.00 target price on Cummins in a research note on Tuesday, February 10th. UBS Group set a $565.00 target price on Cummins and gave the stock a "neutral" rating in a research note on Friday, February 6th. Sanford C. Bernstein set a $600.00 price target on Cummins and gave the stock a "market perform" rating in a research report on Friday, February 6th. Robert W. Baird set a $580.00 price target on Cummins in a research report on Friday, February 6th. Finally, Citigroup lifted their price target on Cummins from $630.00 to $710.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Eleven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $598.47.

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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