Meadowbrook Advisors Group LLC Makes New Investment in Cummins Inc. $CMI

Key Points

• Meadowbrook Advisors Group LLC opened a new position in Cummins during the fourth quarter, buying 3,668 shares worth about $1.87 million.
• Cummins reported better-than-expected quarterly results, with EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, while raising its annualized dividend to $8.00 per share for a 1.1% yield.
• Analyst sentiment remains positive overall: Cummins has a Moderate Buy consensus rating and an average price target of $731.86, though several insiders recently sold shares.

Meadowbrook Advisors Group LLC bought a new position in Cummins Inc. (NYSE:CMI - Free Report) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 3,668 shares of the company's stock, valued at approximately $1,872,000.

A number of other institutional investors have also made changes to their positions in the company. Thompson Investment Management Inc. acquired a new stake in shares of Cummins during the 4th quarter valued at approximately $26,000. Activest Wealth Management boosted its holdings in 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 acquired a new position in Cummins in the fourth quarter worth $27,000. Birchwood Financial Partners Inc. bought a new stake in Cummins during the fourth quarter valued at $28,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Cummins during the fourth quarter worth $28,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Performance

CMI stock opened at $716.50 on Friday. 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 capitalization of $98.87 billion, a price-to-earnings ratio of 37.18, a PEG ratio of 1.75 and a beta of 1.23. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $737.76. The stock's fifty day moving average is $663.00 and its two-hundred day moving average is $590.68.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate 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%. The company's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.96 earnings per share. On average, research analysts predict that Cummins Inc. will post 29.31 EPS for the current year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Shareholders 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 yield of 1.1%. The ex-dividend date of this dividend was Friday, May 22nd. Cummins's payout ratio is presently 41.52%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. JPMorgan Chase & Co. boosted their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Raymond James Financial increased their price objective on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 26th. Wells Fargo & Company raised their target price on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a report on Wednesday. Finally, Evercore restated an "outperform" rating and issued a $845.00 target price on shares of Cummins in a research note on Monday, May 11th. 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 company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $731.86.

Insider Transactions at Cummins

In other Cummins news, VP Jennifer Mary Bush sold 5,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the transaction, the vice president owned 11,986 shares in the company, valued at approximately $8,344,773.06. This represents a 29.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Marvin Boakye sold 3,481 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the completion of the sale, the vice president owned 8,508 shares in the company, valued at $5,784,589.20. The trade was a 29.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 13,579 shares of company stock worth $9,377,684 in the last quarter. 0.30% of the stock is currently owned by corporate insiders.

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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