SFE Investment Counsel Has $11.57 Million Stock Position in Cummins Inc. $CMI

Key Points

• SFE Investment Counsel trimmed its Cummins stake by 6.5% in the fourth quarter, but still held 22,664 shares valued at about $11.57 million.
• Cummins reported strong quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above forecasts, while also declaring a $2.00 quarterly dividend.
• Analysts have turned more upbeat on the stock, with several firms raising price targets and Zacks upgrading Cummins to strong-buy; the consensus rating remains Moderate Buy.

SFE Investment Counsel cut its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 6.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 22,664 shares of the company's stock after selling 1,585 shares during the quarter. Cummins comprises about 1.8% of SFE Investment Counsel's holdings, making the stock its 17th largest position. SFE Investment Counsel's holdings in Cummins were worth $11,569,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of CMI. Boston Partners acquired a new stake in shares of Cummins during the third quarter worth $473,471,000. London Co. of Virginia acquired a new stake in shares of Cummins during the third quarter worth $231,732,000. Bank of New York Mellon Corp increased its position in shares of Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock worth $612,715,000 after buying an additional 488,430 shares during the period. Nordea Investment Management AB increased its position in shares of Cummins by 103.8% during the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock worth $280,397,000 after buying an additional 278,350 shares during the period. Finally, Merewether Investment Management LP acquired a new stake in shares of Cummins during the third quarter worth $91,147,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Cummins

In other Cummins news, VP Donald G. Jackson sold 1,600 shares of the firm's stock in a transaction 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 transaction, the vice president directly owned 7,214 shares of the company's stock, valued at approximately $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. 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 firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the transaction, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 21,667 shares of company stock valued at $13,946,861. Corporate insiders own 0.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CMI. Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the stock a "market perform" rating in a research report on Friday, February 6th. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 7th. UBS Group set a $565.00 price objective on shares of Cummins and gave the stock a "neutral" rating in a research report on Friday, February 6th. Robert W. Baird set a $700.00 price target on shares of Cummins in a report on Wednesday, May 6th. Finally, Weiss Ratings cut shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report 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 company's stock. According to MarketBeat, Cummins currently has a consensus rating of "Moderate Buy" and a consensus price target of $677.87.

Trending Headlines about Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest quarterly results beat expectations, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly ahead of forecasts, reinforcing confidence in business momentum.
• Positive Sentiment: Analysts have turned more bullish, including Citigroup raising its price target to $770, Barclays lifting its target to $760, Evercore reiterating an outperform rating with an $845 target, and Zacks upgrading the stock to strong-buy.
• Positive Sentiment: The company declared a quarterly dividend of $2.00 per share, signaling continued capital returns to shareholders and supporting the stock’s income appeal.
• Neutral Sentiment: Recent coverage highlighted Cummins’ relative performance versus other auto, tires and truck names, but this is more of a comparison piece than a fresh catalyst. Article Title
• Negative Sentiment: Multiple insiders sold shares over the past few days, including VP Jennifer Mary Bush, VP Nathan Stoner, and insider Brett Michael Merritt, which may slightly temper enthusiasm despite the company’s strong operating results.

Cummins Trading Up 0.9%

NYSE:CMI opened at $710.88 on Thursday. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The stock has a market capitalization of $98.09 billion, a price-to-earnings ratio of 36.89, a PEG ratio of 1.78 and a beta of 1.27. The firm has a fifty day simple moving average of $595.91 and a two-hundred day simple moving average of $551.55. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the company posted $5.96 earnings per share. Analysts expect that Cummins Inc. will post 28.39 EPS for the current fiscal year.

Cummins Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's dividend payout ratio (DPR) is 41.52%.

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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