Passumpsic Savings Bank Invests $3.34 Million in Cummins Inc. $CMI

Key Points

• Passumpsic Savings Bank opened a new position in Cummins, buying 6,536 shares worth about $3.34 million. The stake makes Cummins its 15th-largest holding and about 1.8% of its portfolio.
• Cummins reported better-than-expected quarterly earnings, posting $6.15 EPS versus estimates of $5.63 and revenue of $8.40 billion, slightly above forecasts. Revenue rose 2.7% year over year, and analysts now expect full-year EPS of 28.39.
• The company also announced a quarterly dividend of $2.00 per share, equal to $8.00 annually and a 1.1% yield. Meanwhile, analysts remain generally positive, with an average rating of Moderate Buy and an average target price of $677.87.

Passumpsic Savings Bank bought a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 6,536 shares of the company's stock, valued at approximately $3,336,000. Cummins accounts for approximately 1.8% of Passumpsic Savings Bank's portfolio, making the stock its 15th biggest holding.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of Cummins by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after acquiring an additional 98,544 shares during the period. Fisher Asset Management LLC boosted its stake in shares of Cummins by 2.8% during the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock worth $1,422,121,000 after acquiring an additional 91,956 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after acquiring an additional 2,434,876 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Cummins by 0.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,537,347 shares of the company's stock worth $649,280,000 after acquiring an additional 7,372 shares during the period. Finally, Raymond James Financial Inc. boosted its stake in shares of Cummins by 4.5% during the 3rd quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company's stock worth $640,090,000 after acquiring an additional 64,822 shares during the period. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Performance

NYSE:CMI opened at $698.36 on Monday. The stock has a fifty day moving average price of $601.51 and a 200-day moving average price of $555.57. The company has a market cap of $96.37 billion, a price-to-earnings ratio of 36.24, a PEG ratio of 1.76 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 fifty-two week low of $307.90 and a fifty-two week high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating analysts' consensus estimates 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 return on equity of 25.25% and a net margin of 7.89%.The company's revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the company posted $5.96 EPS. As a group, equities analysts anticipate that Cummins Inc. will post 28.39 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be given a dividend of $2.00 per share. 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 is presently 41.52%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CMI shares. UBS Group set a $565.00 price target on Cummins and gave the company a "neutral" rating in a research note on Friday, February 6th. Wells Fargo & Company boosted their price target on Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Sanford C. Bernstein set a $600.00 price target on Cummins and gave the company a "market perform" rating in a research note on Friday, February 6th. Raymond James Financial boosted their price target on Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a research note on Monday, February 9th. Finally, Morgan Stanley boosted their price target on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $677.87.

Insider Activity at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the business's stock in a transaction on Tuesday, March 3rd. The stock was 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 approximately $8,873,101.38. The trade was a 20.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the transaction, the vice president directly owned 11,986 shares of the company's stock, valued at $8,344,773.06. This trade represents a 29.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 22,397 shares of company stock worth $14,465,833 in the last three months. Insiders own 0.30% of the company's stock.

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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