QRG Capital Management Inc. Acquires 30,775 Shares of Cummins Inc. $CMI

Key Points

• QRG Capital Management boosted its stake in Cummins by 157.2% in Q4, buying 30,775 shares to hold 50,352 shares valued at about $25.7 million per its latest 13F filing.
• Cummins beat expectations in its most recent quarter with EPS of $5.81 (vs. $5.17 est.) and revenue of $8.54 billion (vs. $8.09 billion est.), and Wall Street's consensus is a Moderate Buy with a roughly $600.27 target price.
• Insiders sold 31,195 shares worth about $18.4 million over the last quarter while institutional investors own 83.46% of the stock, and the company pays a $2.00 quarterly dividend ($8.00 annual, ~1.2% yield).

QRG Capital Management Inc. boosted its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 157.2% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 50,352 shares of the company's stock after purchasing an additional 30,775 shares during the period. QRG Capital Management Inc.'s holdings in Cummins were worth $25,702,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Thompson Investment Management Inc. bought a new position in Cummins during the fourth quarter worth about $26,000. Activest Wealth Management raised its stake in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after acquiring an additional 43 shares during the last quarter. Ares Financial Consulting LLC bought a new position in shares of Cummins in the fourth quarter valued at approximately $29,000. Holos Integrated Wealth LLC bought a new position in shares of Cummins in the fourth quarter valued at approximately $32,000. Finally, Palouse Capital Management Inc. bought a new position in shares of Cummins in the fourth quarter valued at approximately $33,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

Shares of Cummins stock opened at $657.75 on Tuesday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. The firm has a market cap of $90.88 billion, a P/E ratio of 32.05, a P/E/G ratio of 2.08 and a beta of 1.27. The firm has a 50 day simple moving average of $581.03 and a 200 day simple moving average of $537.79. Cummins Inc. has a fifty-two week low of $290.73 and a fifty-two week high of $674.75.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. The business had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. Cummins's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter last year, the business posted $5.16 earnings per share. Sell-side analysts predict that Cummins Inc. will post 26.05 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were issued a $2.00 dividend. The ex-dividend date of this dividend was Friday, February 20th. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. Cummins's dividend payout ratio (DPR) is currently 38.99%.

Insiders Place Their Bets

In related news, VP Donald G. Jackson sold 1,600 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the completion of the sale, the vice president owned 7,214 shares of the company's stock, valued at $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Jennifer Mary Bush sold 4,270 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the sale, the vice president directly owned 15,130 shares of the company's stock, valued at approximately $8,849,990.90. This represents a 22.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 31,195 shares of company stock valued at $18,397,489 over the last quarter. Company insiders own 0.30% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on CMI shares. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. Weiss Ratings reiterated a "buy (b)" rating on shares of Cummins in a research note on Friday, April 10th. Sanford C. Bernstein set a $600.00 target price on shares of Cummins and gave the company a "market perform" rating in a research note on Friday, February 6th. Barclays lifted their target price on shares of Cummins from $546.00 to $610.00 and gave the company an "overweight" rating in a research note on Friday, January 23rd. Finally, Wolfe Research cut shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price for the company. in a research note on Monday, January 26th. Eleven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $600.27.

Cummins 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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