SIR Capital Management L.P. Purchases Shares of 11,900 Cummins Inc. $CMI

Key Points

• SIR Capital Management disclosed a new fourth-quarter stake in Cummins, buying 11,900 shares valued at about $6.07 million. The filing shows continued institutional interest, with 83.46% of the stock owned by institutions.
• Several Cummins insiders sold shares recently, including VP Jennifer Mary Bush and insider Brett Michael Merritt. Over the last 90 days, insiders have sold a total of 13,579 shares worth about $9.38 million.
• Cummins reported strong quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above expectations. The company also paid a quarterly dividend of $2.00 per share and has received a Moderate Buy consensus rating from analysts.

SIR Capital Management L.P. purchased a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 11,900 shares of the company's stock, valued at approximately $6,074,000.

Other large investors have also made changes to their positions in the company. Thompson Investment Management Inc. bought a new stake in shares of Cummins during the 4th quarter valued at about $26,000. Activest Wealth Management grew 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 valued at $26,000 after purchasing an additional 43 shares during the period. Wellington Shields Capital Management LLC bought a new stake in shares of Cummins during the 4th quarter valued at about $27,000. Ares Financial Consulting LLC bought a new stake in shares of Cummins during the 4th quarter valued at about $29,000. Finally, Holos Integrated Wealth LLC bought a new stake in shares of Cummins during the 4th quarter valued at about $32,000. 83.46% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Cummins news, VP Jennifer Mary Bush sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value 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 represents a 29.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Brett Michael Merritt sold 701 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the transaction, the insider owned 10,404 shares of the company's stock, valued at $7,165,755. The trade was a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 over the last ninety days. 0.30% of the stock is owned by company insiders.

Cummins Trading Up 0.6%

Shares of NYSE:CMI opened at $659.77 on Friday. The stock has a 50 day moving average of $648.43 and a 200 day moving average of $583.26. The company has a market cap of $91.04 billion, a PE ratio of 34.24, a price-to-earnings-growth ratio of 1.60 and a beta of 1.23. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. 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 announced its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the previous year, the company posted $5.96 EPS. The firm's revenue was up 2.7% on a year-over-year basis. As a group, equities research analysts expect that Cummins Inc. will post 29.29 EPS for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio is presently 41.52%.

Wall Street Analyst Weigh In

CMI has been the subject of a number of recent research reports. Raymond James Financial boosted their price objective on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research note on Tuesday, May 26th. Wells Fargo & Company boosted their price objective on Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Robert W. Baird set a $700.00 price objective on Cummins in a research note on Wednesday, May 6th. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. Finally, Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $726.14.

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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