Smithbridge Asset Management Inc. DE Increases Holdings in Cummins Inc. $CMI

Key Points

• Smithbridge Asset Management increased its Cummins stake by 39.3% in the fourth quarter, bringing its holdings to 5,632 shares worth about $2.88 million.
• Cummins reported better-than-expected earnings for the quarter, posting $6.15 EPS on $8.40 billion in revenue, with revenue up 2.7% year over year.
• Wall Street sentiment remains positive overall: several analysts raised price targets on Cummins, and the consensus rating is still Moderate Buy with a target price of $726.14.

Smithbridge Asset Management Inc. DE lifted its position in Cummins Inc. (NYSE:CMI - Free Report) by 39.3% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 5,632 shares of the company's stock after purchasing an additional 1,588 shares during the quarter. Smithbridge Asset Management Inc. DE's holdings in Cummins were worth $2,875,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the business. Hodges Capital Management Inc. raised its holdings in shares of Cummins by 8.0% during the fourth quarter. Hodges Capital Management Inc. now owns 3,512 shares of the company's stock worth $1,793,000 after purchasing an additional 261 shares during the last quarter. Wellspring Financial Advisors LLC purchased a new position in Cummins during the fourth quarter valued at approximately $249,000. Zions Bancorporation National Association UT raised its position in Cummins by 17.9% during the fourth quarter. Zions Bancorporation National Association UT now owns 547 shares of the company's stock valued at $279,000 after acquiring an additional 83 shares in the last quarter. RM Financial Services LLC purchased a new position in Cummins during the fourth quarter valued at approximately $639,000. Finally, Janney Montgomery Scott LLC raised its position in Cummins by 15.5% during the fourth quarter. Janney Montgomery Scott LLC now owns 50,028 shares of the company's stock valued at $25,537,000 after acquiring an additional 6,712 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Down 5.7%

Cummins stock opened at $630.88 on Thursday. The stock has a market capitalization of $87.05 billion, a PE ratio of 32.74, a price-to-earnings-growth ratio of 1.64 and a beta of 1.23. The business has a 50 day simple moving average of $643.89 and a 200-day simple moving average of $581.43. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. 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 released its 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 company's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $5.96 earnings per share. On average, analysts anticipate that Cummins Inc. will post 29.29 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were paid a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.3%. Cummins's payout ratio is currently 41.52%.

Insider Buying and Selling at Cummins

In related news, EVP Bonnie J. Fetch sold 652 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the completion of the sale, the executive vice president directly owned 11,679 shares in the company, valued at approximately $8,177,519.01. The trade was a 5.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Brett Michael Merritt sold 701 shares of the business'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 sale, 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. Over the last ninety days, insiders have sold 13,579 shares of company stock valued at $9,377,684. Corporate insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

CMI has been the subject of several recent research reports. Argus lifted their price target on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research report on Monday, June 1st. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Barclays lifted their price objective on shares of Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cummins in a report on Friday, May 22nd. Finally, UBS Group raised shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $565.00 to $850.00 in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus target price of $726.14.

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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