Leeward Financial Partners LLC Purchases New Holdings in Cummins Inc. $CMI

Key Points

• Leeward Financial Partners LLC initiated a new position in Cummins during the first quarter, buying 6,540 shares valued at about $3.52 million.
• Cummins reported stronger-than-expected quarterly results, posting $6.15 EPS versus the $5.63 estimate and revenue of $8.40 billion, while also raising investor interest with a quarterly $2.00 per share dividend.
• Several insiders have recently sold stock, including CAO Nicole Lamb-Hale and VP Donald G. Jackson, even as analysts remain broadly positive with a Moderate Buy consensus and an average price target of $731.86.

Leeward Financial Partners LLC purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 6,540 shares of the company's stock, valued at approximately $3,519,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Thompson Investment Management Inc. bought a new stake in shares of Cummins during the 4th quarter valued at $26,000. Activest Wealth Management increased its position in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares during the period. Wellington Shields Capital Management LLC bought a new position in shares of Cummins in the fourth quarter worth $27,000. Birchwood Financial Partners Inc. acquired a new position in Cummins in the fourth quarter valued at about $28,000. Finally, Kemnay Advisory Services Inc. acquired a new position in Cummins in the fourth quarter valued at about $28,000. Institutional investors own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In related news, CAO Nicole Lamb-Hale sold 2,408 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares of the company's stock, valued at $9,652,328.56. This represents a 14.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Donald G. Jackson sold 730 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the sale, the vice president owned 8,316 shares in the company, valued at $5,912,010.72. This represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 13,579 shares of company stock worth $9,377,684 over the last 90 days. 0.30% of the stock is owned by corporate insiders.

Cummins Stock Performance

NYSE:CMI opened at $694.12 on Thursday. Cummins Inc. has a twelve month low of $317.74 and a twelve month high of $737.76. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. The stock's 50-day simple moving average is $668.44 and its 200 day simple moving average is $595.56. The firm has a market capitalization of $95.78 billion, a PE ratio of 36.02, a price-to-earnings-growth ratio of 1.71 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping the consensus estimate of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $5.96 earnings per share. On average, analysts anticipate that Cummins Inc. will post 29.31 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio is currently 41.52%.

Wall Street Analyst Weigh In

CMI has been the topic of a number of analyst reports. JPMorgan Chase & Co. increased their price objective on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Wall Street Zen cut shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cummins in a report on Friday, May 22nd. Morgan Stanley increased their price target on shares of Cummins from $675.00 to $752.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, UBS Group reissued a "buy" rating on shares of Cummins in a research note on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $731.86.

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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