North Dallas Bank & Trust Co. Makes New Investment in Cummins Inc. $CMI

Key Points

• North Dallas Bank & Trust initiated a new position in Cummins during the fourth quarter, buying 3,389 shares valued at about $1.73 million. The stake makes Cummins the bank’s 28th-largest holding and 1.1% of its portfolio.
• Cummins posted stronger-than-expected quarterly results, reporting EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, slightly ahead of forecasts. Management also raised the company’s profile with a quarterly dividend of $2.00 per share.
• Analyst sentiment remains positive, with several firms lifting price targets, including Citigroup to $770 and Barclays to $760. The stock currently has a consensus Moderate Buy rating and an average price target of $726.14.

North Dallas Bank & Trust Co. bought a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 3,389 shares of the company's stock, valued at approximately $1,730,000. Cummins accounts for 1.1% of North Dallas Bank & Trust Co.'s portfolio, making the stock its 28th largest holding.

Other institutional investors have also recently bought and sold shares of the company. Thompson Investment Management Inc. acquired a new position in shares of Cummins in the fourth quarter valued at approximately $26,000. Activest Wealth Management lifted 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 in the last quarter. Wellington Shields Capital Management LLC acquired a new stake in Cummins in the fourth quarter valued at $27,000. Ares Financial Consulting LLC acquired a new stake in Cummins in the fourth quarter valued at $29,000. Finally, Holos Integrated Wealth LLC acquired a new stake in Cummins in the fourth quarter valued at $32,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In related news, insider Brett Michael Merritt sold 701 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the transaction, the insider directly owned 10,404 shares of the company's stock, valued at approximately $7,165,755. The trade was a 6.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Nathan R. Stoner sold 607 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $694.06, for a total transaction of $421,294.42. Following the completion of the transaction, the vice president directly owned 9,447 shares in the company, valued at $6,556,784.82. This trade represents a 6.04% decrease in their ownership of the stock. 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 ninety days. 0.30% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Robert W. Baird set a $700.00 target price on shares of Cummins in a research note on Wednesday, May 6th. Wall Street Zen lowered shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Citigroup raised their price target on shares of Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Barclays raised their price target on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. raised their price target on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued 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 price target of $726.14.

Cummins Stock Down 0.6%

NYSE:CMI opened at $668.73 on Wednesday. The firm's 50 day simple moving average is $641.50 and its 200 day simple moving average is $580.27. 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 one year low of $307.90 and a one year high of $718.08. The company has a market cap of $92.28 billion, a PE ratio of 34.70, a P/E/G ratio of 1.64 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly 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 firm had revenue of $8.40 billion for 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% on a year-over-year basis. During the same quarter in the previous year, the company earned $5.96 EPS. On average, research analysts anticipate that Cummins Inc. will post 29.29 earnings per share for the current year.

Cummins Announces Dividend

The firm also recently declared 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 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's payout ratio is 41.52%.

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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