Madison Asset Management LLC Cuts Stake in Cummins Inc. $CMI

Key Points

• Madison Asset Management cut its Cummins stake by 24.4% in the fourth quarter, selling 4,452 shares and ending with 13,781 shares worth about $7.0 million.
• Cummins posted strong quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly ahead of forecasts, while revenue also rose 2.7% year over year.
• The company raised shareholder returns with a quarterly dividend of $2.00 per share, and analysts remain mostly constructive with a consensus rating of Moderate Buy and a price target of $677.87.

Madison Asset Management LLC reduced its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 24.4% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 13,781 shares of the company's stock after selling 4,452 shares during the period. Madison Asset Management LLC's holdings in Cummins were worth $7,035,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. Thompson Investment Management Inc. acquired a new position in Cummins during the 4th quarter worth approximately $26,000. Activest Wealth Management grew its holdings in Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after acquiring an additional 43 shares in the last quarter. Ares Financial Consulting LLC acquired a new position in Cummins during the 4th quarter worth approximately $29,000. Holos Integrated Wealth LLC acquired a new position in Cummins during the 4th quarter worth approximately $32,000. Finally, Palouse Capital Management Inc. acquired a new position in Cummins during the 4th quarter worth approximately $33,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have commented on the stock. Evercore reiterated an "outperform" rating and set a $845.00 price target on shares of Cummins in a report on Monday. Robert W. Baird set a $700.00 price target on shares of Cummins in a report on Wednesday, May 6th. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Wolfe Research cut shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price target for the company. in a report on Monday, January 26th. Finally, Weiss Ratings cut shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $677.87.

Insiders Place Their Bets

In other news, VP Marvin Boakye sold 3,481 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the transaction, the vice president owned 8,508 shares in the company, valued at $5,784,589.20. This trade represents a 29.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares of the company's stock, valued at $8,873,101.38. This represents a 20.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 21,667 shares of company stock worth $13,946,861. Insiders own 0.30% of the company's stock.

Cummins Stock Up 0.9%

Shares of Cummins stock opened at $710.88 on Thursday. The company has a market cap of $98.09 billion, a P/E ratio of 36.89, a PEG ratio of 1.78 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a one year low of $307.90 and a one year high of $718.08. The firm has a fifty day moving average of $595.91 and a two-hundred day moving average of $551.55.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 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 the consensus estimate 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% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.96 EPS. On average, analysts forecast that Cummins Inc. will post 28.39 earnings per share for the current year.

Cummins Announces Dividend

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

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest quarterly results beat expectations, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly ahead of forecasts, reinforcing confidence in business momentum.
• Positive Sentiment: Analysts have turned more bullish, including Citigroup raising its price target to $770, Barclays lifting its target to $760, Evercore reiterating an outperform rating with an $845 target, and Zacks upgrading the stock to strong-buy.
• Positive Sentiment: The company declared a quarterly dividend of $2.00 per share, signaling continued capital returns to shareholders and supporting the stock’s income appeal.
• Neutral Sentiment: Recent coverage highlighted Cummins’ relative performance versus other auto, tires and truck names, but this is more of a comparison piece than a fresh catalyst. Article Title
• Negative Sentiment: Multiple insiders sold shares over the past few days, including VP Jennifer Mary Bush, VP Nathan Stoner, and insider Brett Michael Merritt, which may slightly temper enthusiasm despite the company’s strong operating results.

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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