London Co. of Virginia Has $277.02 Million Stake in Cummins Inc. $CMI

Key Points

• London Co. of Virginia trimmed its Cummins stake by 1.1% in the fourth quarter but still held 542,656 shares worth about $277.0 million, making CMI its 24th-largest holding and about 1.6% of its portfolio.
• Insiders were net sellers last quarter, including VP Jennifer Mary Bush and insider Brett Michael Merritt, with total insider sales of 13,579 shares worth about $9.38 million.
• Analysts remain constructive on Cummins, with several firms raising price targets; the stock carries a consensus rating of Moderate Buy and an average target price of $726.14. The company also beat earnings estimates, reporting $6.15 EPS on $8.40 billion in revenue, and continues to pay a quarterly dividend of $2.00 per share.

London Co. of Virginia decreased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 1.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 542,656 shares of the company's stock after selling 5,959 shares during the quarter. Cummins makes up about 1.6% of London Co. of Virginia's investment portfolio, making the stock its 24th biggest holding. London Co. of Virginia owned 0.39% of Cummins worth $277,015,000 at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in CMI. Thompson Investment Management Inc. acquired a new position in Cummins during the fourth quarter worth $26,000. Activest Wealth Management boosted its holdings in Cummins by 537.5% during 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 last quarter. Wellington Shields Capital Management LLC acquired a new position in Cummins during the fourth quarter worth $27,000. Kemnay Advisory Services Inc. acquired a new stake in Cummins in the fourth quarter valued at $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in Cummins in the fourth quarter valued at $29,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity at Cummins

In other news, VP Jennifer Mary Bush sold 5,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president owned 11,986 shares in the company, valued at approximately $8,344,773.06. This trade represents a 29.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Brett Michael Merritt sold 701 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $688.75, for a total transaction of $482,813.75. Following the sale, the insider owned 10,404 shares of the company's stock, valued at approximately $7,165,755. This represents a 6.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,579 shares of company stock worth $9,377,684 in the last quarter. 0.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CMI. Citigroup increased their price target on shares of Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Robert W. Baird set a $700.00 price target on shares of Cummins in a research note on Wednesday, May 6th. Morgan Stanley increased their price target on shares of Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Wells Fargo & Company increased their price target on shares of Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. One 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 company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $726.14.

Cummins Stock Performance

NYSE CMI opened at $701.15 on Wednesday. The firm has a 50-day moving average of $654.05 and a 200-day moving average of $586.69. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The stock has a market cap of $96.75 billion, a PE ratio of 36.39, a P/E/G ratio of 1.66 and a beta of 1.24. Cummins Inc. has a 52-week low of $307.90 and a 52-week high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The company had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. Cummins's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the company posted $5.96 EPS. On average, sell-side analysts anticipate that Cummins Inc. will post 29.29 EPS for the current year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio (DPR) is currently 41.52%.

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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