Sienna Gestion Trims Stock Position in Cummins Inc. $CMI

Key Points

• Sienna Gestion cut its stake in Cummins by 90.3% in Q3, selling 40,174 shares and leaving 4,316 shares valued at about $1.66 million per its latest 13F filing.
• Insider selling has accelerated: two VPs recently sold shares (1,600 and 1,300) and insiders disposed of 31,195 shares worth roughly $18.4 million over the last three months, with corporate insiders now owning 0.41%.
• Cummins posted an earnings beat and pays a dividend: Q earnings were $5.81 EPS (vs. $5.17 est.) on $8.54B revenue, it declared a $2.00 quarterly dividend ($8.00 annualized, ~1.5% yield), and analysts have raised price targets, leaving a consensus "Moderate Buy."

Sienna Gestion lessened its stake in Cummins Inc. (NYSE:CMI - Free Report) by 90.3% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,316 shares of the company's stock after selling 40,174 shares during the period. Sienna Gestion's holdings in Cummins were worth $1,662,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. United Capital Management of KS Inc. boosted its holdings in shares of Cummins by 2.0% in the third quarter. United Capital Management of KS Inc. now owns 1,149 shares of the company's stock valued at $485,000 after acquiring an additional 22 shares during the period. Stock Yards Bank & Trust Co. raised its position in Cummins by 0.4% in the 3rd quarter. Stock Yards Bank & Trust Co. now owns 5,917 shares of the company's stock valued at $2,499,000 after purchasing an additional 24 shares during the last quarter. Whittier Trust Co. boosted its stake in Cummins by 0.9% during the 3rd quarter. Whittier Trust Co. now owns 2,667 shares of the company's stock worth $1,154,000 after purchasing an additional 24 shares during the period. Howard Capital Management Inc. grew its position in Cummins by 2.9% during the 3rd quarter. Howard Capital Management Inc. now owns 863 shares of the company's stock worth $365,000 after purchasing an additional 24 shares during the last quarter. Finally, BNP Paribas grew its position in Cummins by 1.8% during the 2nd quarter. BNP Paribas now owns 1,422 shares of the company's stock worth $466,000 after purchasing an additional 25 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In other Cummins news, VP Donald G. Jackson sold 1,600 shares of the business's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total transaction of $960,208.00. Following the sale, the vice president directly owned 7,214 shares in the company, valued at approximately $4,329,337.82. The trade was a 18.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Earl Newsome sold 1,300 shares of the company's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $583.67, for a total value of $758,771.00. Following the completion of the sale, the vice president directly owned 3,389 shares in the company, valued at $1,978,057.63. This trade represents a 27.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 31,195 shares of company stock worth $18,397,489. Corporate insiders own 0.41% of the company's stock.

Cummins Stock Performance

NYSE:CMI opened at $539.59 on Monday. The firm's fifty day simple moving average is $570.78 and its 200-day simple moving average is $491.34. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. The stock has a market cap of $74.55 billion, a PE ratio of 26.30, a price-to-earnings-growth ratio of 1.71 and a beta of 1.12. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $617.98.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $5.81 EPS for the quarter, topping analysts' consensus estimates of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter in the previous year, the firm earned $5.16 earnings per share. The firm's revenue was up 1.1% on a year-over-year basis. Analysts expect that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were paid a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, February 20th. This represents a $8.00 annualized dividend and a dividend yield of 1.5%. Cummins's payout ratio is 38.99%.

Wall Street Analyst Weigh In

CMI has been the subject of a number of research reports. Raymond James Financial upped their target price on shares of Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a report on Monday, February 9th. Truist Financial reissued a "buy" rating and set a $703.00 price target (up from $653.00) on shares of Cummins in a report on Friday, February 6th. Citigroup upped their price objective on Cummins from $580.00 to $630.00 and gave the company a "buy" rating in a research note on Tuesday, January 13th. Wells Fargo & Company increased their price objective on Cummins from $599.00 to $630.00 and gave the stock an "overweight" rating in a research report on Friday, January 23rd. Finally, Wall Street Zen downgraded Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday. Eleven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $588.93.

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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