SFE Investment Counsel Cuts Stock Holdings in Cummins Inc. $CMI

Key Points

• SFE Investment Counsel reduced its Cummins stake by 14.6% in the first quarter, selling 3,311 shares and leaving it with 19,353 shares valued at about $10.4 million.
• Wall Street remains broadly positive on Cummins, with an average “Moderate Buy” rating and a consensus price target of $738, while several firms recently raised their targets.
• Cummins reported solid quarterly results, beating earnings estimates with $6.15 EPS on revenue of $8.40 billion, and it also paid a quarterly dividend of $2.00 per share.

SFE Investment Counsel reduced its stake in Cummins Inc. (NYSE:CMI - Free Report) by 14.6% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 19,353 shares of the company's stock after selling 3,311 shares during the quarter. Cummins makes up 1.6% of SFE Investment Counsel's investment portfolio, making the stock its 17th largest holding. SFE Investment Counsel's holdings in Cummins were worth $10,412,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently made changes to their positions in the company. Cedar Mountain Advisors LLC lifted its position in shares of Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after buying an additional 45 shares in the last quarter. Thompson Investment Management Inc. bought a new position in Cummins in the 4th quarter valued at $26,000. Activest Wealth Management raised its stake in shares of Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares during the period. Wellington Shields Capital Management LLC bought a new position in Cummins during the fourth quarter valued at about $27,000. Finally, Key Financial Inc boosted its stake in Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after acquiring an additional 20 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

CMI has been the topic of several research analyst reports. Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. Weiss Ratings lowered Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Barclays boosted their price objective on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Evercore reaffirmed an "outperform" rating and set a $845.00 price objective on shares of Cummins in a report on Monday, May 11th. Finally, Truist Financial increased their target price on shares of Cummins from $815.00 to $901.00 and gave the stock a "buy" rating in a research report on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $738.00.

Insiders Place Their Bets

In related news, CAO Nicole Lamb-Hale sold 2,408 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $685.34, for a total value of $1,650,298.72. Following the sale, the chief accounting officer directly owned 14,084 shares of the company's stock, valued at $9,652,328.56. This trade represents a 14.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Marvin Boakye sold 3,481 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the completion of the transaction, the vice president directly owned 8,508 shares of the company's stock, valued at approximately $5,784,589.20. This represents a 29.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by corporate insiders.

Cummins Stock Performance

Shares of NYSE:CMI traded up $3.54 during midday trading on Friday, reaching $676.93. 572,903 shares of the company traded hands, compared to its average volume of 1,073,951. Cummins Inc. has a 12 month low of $334.70 and a 12 month high of $737.76. The firm's fifty day moving average price is $679.54 and its two-hundred day moving average price is $609.34. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. The firm has a market capitalization of $93.41 billion, a price-to-earnings ratio of 35.13, a price-to-earnings-growth ratio of 1.65 and a beta of 1.22.

Cummins (NYSE:CMI - Get Free Report) last announced 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. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the prior year, the firm posted $5.96 earnings per share. The company's revenue for the quarter was up 2.7% on a year-over-year basis. On average, equities analysts expect that Cummins Inc. will post 29.32 earnings per share for the current year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's payout ratio is presently 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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