State of Michigan Retirement System Reduces Stock Position in Cummins Inc. $CMI

Key Points

• State of Michigan Retirement System cut its Cummins position by 11.1%, selling 4,506 shares in Q4 and now holds 36,131 shares worth about $18.44 million.
• Company insiders sold a total of 31,195 shares (≈$18.4 million) in the past three months—including VP Donald G. Jackson and VP Jennifer Mary Bush—leaving insiders with only 0.30% ownership.
• Cummins beat quarterly expectations with $5.81 EPS vs. $5.17 expected and $8.54 billion in revenue, pays a $2.00 quarterly dividend (≈1.2% yield), and its shares are trading near a one-year high (~$660).

State of Michigan Retirement System lowered its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 11.1% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 36,131 shares of the company's stock after selling 4,506 shares during the quarter. State of Michigan Retirement System's holdings in Cummins were worth $18,443,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of CMI. Brighton Jones LLC increased its holdings in Cummins by 4.1% during the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after purchasing an additional 83 shares during the period. Intech Investment Management LLC increased its holdings in Cummins by 40.8% during the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock worth $1,240,000 after purchasing an additional 1,146 shares during the period. Treasurer of the State of North Carolina increased its holdings in Cummins by 2.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock worth $21,055,000 after purchasing an additional 1,759 shares during the period. ICW Investment Advisors LLC purchased a new position in Cummins during the 2nd quarter worth $225,000. Finally, Osterweis Capital Management Inc. purchased a new position in Cummins during the 2nd quarter worth $31,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insiders Place Their Bets

In other Cummins news, VP Donald G. Jackson sold 1,600 shares of Cummins 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. 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 the SEC website. Also, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at $8,849,990.90. This represents a 22.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 31,195 shares of company stock valued at $18,397,489 in the last three months. 0.30% of the stock is currently owned by insiders.

Cummins Price Performance

CMI opened at $660.02 on Tuesday. The firm has a market capitalization of $91.19 billion, a PE ratio of 32.16, a price-to-earnings-growth ratio of 2.09 and a beta of 1.14. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. The business's 50-day moving average is $577.63 and its two-hundred day moving average is $532.76. Cummins Inc. has a 1 year low of $284.23 and a 1 year high of $665.13.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $5.81 EPS for the quarter, topping analysts' consensus estimates of $5.17 by $0.64. The business had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm's revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the company posted $5.16 earnings per share. Research analysts anticipate that Cummins Inc. will post 26.03 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Friday, February 20th were issued a $2.00 dividend. The ex-dividend date was Friday, February 20th. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's payout ratio is currently 38.99%.

Analyst Ratings Changes

Several research analysts have commented on the company. Wells Fargo & Company raised their price objective on Cummins from $630.00 to $693.00 and gave the stock an "overweight" rating in a report on Monday, April 13th. Wolfe Research downgraded Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective on the stock. in a report on Monday, January 26th. Argus set a $696.00 price objective on Cummins in a report on Tuesday, February 10th. UBS Group set a $565.00 price objective on Cummins and gave the stock a "neutral" rating in a report on Friday, February 6th. Finally, Robert W. Baird set a $580.00 price objective on Cummins in a report on Friday, February 6th. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, Cummins has an average rating of "Moderate Buy" and a consensus target price of $600.27.

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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