Northern Capital Management Inc. Takes $200,000 Position in Cummins Inc. $CMI

Key Points

• Northern Capital Management Inc. has acquired a new stake in Cummins Inc. worth approximately $200,000, purchasing 611 shares in the second quarter.
• Insider trading activity showed that CFO Mark Andrew Smith sold 8,000 shares of Cummins stock for over $3.5 million, reflecting a 20.21% decrease in his position.
• Several brokerages have recently upgraded Cummins' stock ratings, with Wolfe Research moving it to an "outperform" rating and Citigroup raising the target price to $485.

Northern Capital Management Inc. acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 611 shares of the company's stock, valued at approximately $200,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Olde Wealth Management LLC bought a new stake in Cummins during the first quarter worth approximately $30,000. Accredited Wealth Management LLC bought a new stake in Cummins during the first quarter worth approximately $31,000. Richardson Financial Services Inc. purchased a new stake in shares of Cummins in the 1st quarter valued at approximately $39,000. Costello Asset Management INC purchased a new stake in Cummins in the 1st quarter worth approximately $40,000. Finally, Wealth Preservation Advisors LLC purchased a new stake in Cummins in the 1st quarter worth approximately $41,000. 83.46% of the stock is currently owned by institutional investors.

Insider Activity

In related news, CFO Mark Andrew Smith sold 8,000 shares of Cummins stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $439.30, for a total transaction of $3,514,400.00. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $13,873,972.60. This trade represents a 20.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 43,119 shares of company stock worth $17,674,285 over the last ninety days. Corporate insiders own 0.41% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CMI. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Truist Financial raised their target price on shares of Cummins from $380.00 to $434.00 and gave the company a "hold" rating in a research note on Wednesday, October 8th. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Evercore ISI restated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Finally, Citigroup raised their price target on shares of Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research report on Tuesday, September 23rd. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Moderate Buy" and an average target price of $407.43.

Cummins Price Performance

NYSE:CMI opened at $411.84 on Friday. The company has a 50-day moving average of $411.10 and a 200-day moving average of $352.98. The company has a market capitalization of $56.75 billion, a price-to-earnings ratio of 19.36, a PEG ratio of 1.99 and a beta of 1.04. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $440.51. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period last year, the firm earned $5.26 EPS. As a group, equities research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, November 21st will be issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, November 21st. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Cummins Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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