Morgan Dempsey Capital Management LLC Sells 1,656 Shares of Cummins Inc. $CMI

Key Points

• Morgan Dempsey Capital Management reduced its Cummins stake by 12% in Q1, selling 1,656 shares and leaving it with 12,161 shares worth about $6.54 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 its quarterly dividend to $2.20 from $2.00.
• Wall Street remains upbeat on CMI, with several firms lifting price targets and the stock carrying a consensus Moderate Buy rating and average target price of $740.07.

Morgan Dempsey Capital Management LLC trimmed its position in Cummins Inc. (NYSE:CMI - Free Report) by 12.0% during the first quarter, according to its most recent 13F filing with the SEC. The fund owned 12,161 shares of the company's stock after selling 1,656 shares during the period. Cummins comprises approximately 3.0% of Morgan Dempsey Capital Management LLC's holdings, making the stock its 10th largest holding. Morgan Dempsey Capital Management LLC's holdings in Cummins were worth $6,543,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in CMI. Thompson Investment Management Inc. bought a new position in Cummins in the fourth quarter valued at about $26,000. Activest Wealth Management raised 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 purchasing an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC lifted its position in Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after purchasing an additional 45 shares during the period. Wellington Shields Capital Management LLC acquired a new position in Cummins during the 4th quarter valued at about $27,000. Finally, Key Financial Inc boosted its stake in shares of Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after purchasing an additional 20 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Stock Down 0.0%

Cummins stock opened at $647.67 on Friday. The firm has a market capitalization of $89.37 billion, a price-to-earnings ratio of 33.61, a PEG ratio of 1.58 and a beta of 1.22. The company's 50 day simple moving average is $677.02 and its 200 day simple moving average is $614.26. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. Cummins Inc. has a fifty-two week low of $344.02 and a fifty-two week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating 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 net margin of 7.89% and a return on equity of 25.25%. The business'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 earnings per share. As a group, sell-side analysts anticipate that Cummins Inc. will post 29.34 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a $2.20 dividend. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.4%. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is currently 41.52%.

Analyst Ratings Changes

A number of research firms recently weighed in on CMI. Argus boosted their price target on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. UBS Group reaffirmed a "buy" rating on shares of Cummins in a research note on Wednesday, June 17th. Truist Financial lifted their target price on shares of Cummins from $815.00 to $901.00 and gave the stock a "buy" rating in a report on Thursday, July 2nd. Wells Fargo & Company increased their price target on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. Finally, Weiss Ratings lowered Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $740.07.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Morgan Stanley boosted its price target on Cummins and kept an overweight rating, signaling confidence in further upside. Benzinga
• Neutral Sentiment: Zacks Research slightly raised its Q3 2027 EPS estimate for Cummins to $9.02 from $9.00, a small change that suggests stable longer-term expectations. Article
• Neutral Sentiment: Other Zacks revisions were mixed but generally small, with slight cuts to some FY2027/FY2028 estimates and a continued Hold rating, suggesting analysts are not seeing a major near-term change in fundamentals. Article

Insiders Place Their Bets

In related news, EVP Bonnie J. Fetch sold 652 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the sale, the executive vice president owned 11,679 shares of the company's stock, valued at approximately $8,177,519.01. This trade represents a 5.29% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Jennifer Mary Bush sold 5,000 shares of the business'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 directly owned 11,986 shares of the company's stock, valued at approximately $8,344,773.06. The trade was a 29.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,579 shares of company stock worth $9,377,684 over the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.