Patton Fund Management Inc. Sells 7,300 Shares of Cummins Inc. $CMI

Key Points

• Patton Fund Management Inc. reduced its stake in Cummins Inc. by 90.7%, selling 7,300 shares, and now holds only 751 shares valued at $246,000.
• Cummins recently increased its quarterly dividend to $2.00 per share, reflecting a positive change from the previous $1.82, resulting in an annualized dividend yield of 1.9%.
• The stock has a market capitalization of $57.68 billion and recently reported quarterly earnings of $6.43 per share, exceeding estimates by $1.22.

Patton Fund Management Inc. cut its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 90.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 751 shares of the company's stock after selling 7,300 shares during the period. Patton Fund Management Inc.'s holdings in Cummins were worth $246,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of CMI. Brighton Jones LLC boosted its position in shares of Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after buying an additional 83 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in shares of Cummins by 34.8% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 23,397 shares of the company's stock valued at $8,156,000 after buying an additional 6,042 shares during the last quarter. Central Pacific Bank Trust Division boosted its position in shares of Cummins by 5.0% during the first quarter. Central Pacific Bank Trust Division now owns 815 shares of the company's stock valued at $255,000 after buying an additional 39 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Cummins by 38,220.5% during the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock valued at $373,428,000 after buying an additional 1,188,276 shares during the last quarter. Finally, Beese Fulmer Investment Management Inc. boosted its position in shares of Cummins by 0.6% during the first quarter. Beese Fulmer Investment Management Inc. now owns 42,667 shares of the company's stock valued at $13,374,000 after buying an additional 266 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Performance

Shares of Cummins stock opened at $418.59 on Friday. The stock's fifty day moving average is $394.06 and its two-hundred day moving average is $342.33. The company has a market capitalization of $57.68 billion, a PE ratio of 19.68, a price-to-earnings-growth ratio of 2.02 and a beta of 1.02. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $432.50.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating the consensus estimate of $5.21 by $1.22. The company had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.Cummins's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.26 EPS. As a group, analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were issued a $2.00 dividend. The ex-dividend date was Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Barclays raised their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research note on Wednesday, September 3rd. Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Finally, Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and an average target price of $393.57.

Insiders Place Their Bets

In related news, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the sale, the vice president directly owned 7,693 shares in the company, valued at $2,994,038.67. This represents a 38.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CFO Mark Andrew Smith sold 1,580 shares of the company's stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $419.00, for a total value of $662,020.00. Following the sale, the chief financial officer owned 31,582 shares of the company's stock, valued at $13,232,858. This trade represents a 4.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 35,119 shares of company stock worth $14,159,885. 0.41% of the stock is owned by company insiders.

Cummins Company 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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