Vaughan Nelson Investment Management L.P. Raises Position in Cummins Inc. $CMI

Key Points

• Vaughan Nelson Investment Management dramatically increased its Cummins stake by 9,111.8% in the first quarter, ending with 268,523 shares worth about $144.5 million. The position now represents roughly 1.5% of the firm’s portfolio.
• Cummins beat expectations in its latest earnings report, posting $6.15 per share versus the $5.63 estimate and revenue of $8.40 billion, slightly ahead of forecasts. Quarterly revenue rose 2.7% year over year.
• Wall Street remains constructive on CMI, with a consensus “Moderate Buy” rating and an average price target of $731.86. However, some insiders have sold shares recently, including EVP Bonnie J. Fetch and VP Nathan R. Stoner.

Vaughan Nelson Investment Management L.P. grew its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 9,111.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 268,523 shares of the company's stock after acquiring an additional 265,608 shares during the period. Cummins comprises approximately 1.5% of Vaughan Nelson Investment Management L.P.'s portfolio, making the stock its 11th largest position. Vaughan Nelson Investment Management L.P. owned 0.19% of Cummins worth $144,471,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of CMI. Thompson Investment Management Inc. acquired a new position in Cummins during the 4th quarter worth $26,000. Activest Wealth Management raised its position in Cummins by 537.5% in 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 in the last quarter. Wellington Shields Capital Management LLC acquired a new stake in Cummins in the 4th quarter valued at about $27,000. Birchwood Financial Partners Inc. purchased a new position in shares of Cummins in the 4th quarter valued at about $28,000. Finally, Kemnay Advisory Services Inc. purchased a new position in shares of Cummins in the 4th quarter valued at about $28,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Down 0.1%

NYSE:CMI opened at $716.50 on Monday. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $737.76. The stock has a market cap of $98.87 billion, a P/E ratio of 37.18, a P/E/G ratio of 1.74 and a beta of 1.24. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The stock has a 50-day simple moving average of $663.00 and a 200-day simple moving average of $591.35.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. The business had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the company earned $5.96 EPS. As a group, analysts anticipate that Cummins Inc. will post 29.44 earnings per share for the current fiscal year.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were issued 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 yield of 1.1%. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insider Buying and Selling at Cummins

In related news, EVP Bonnie J. Fetch sold 652 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $700.19, for a total value of $456,523.88. Following the transaction, the executive vice president directly owned 11,679 shares of the company's stock, valued at $8,177,519.01. This trade represents a 5.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Nathan R. Stoner sold 607 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $694.06, for a total transaction of $421,294.42. Following the sale, the vice president owned 9,447 shares in the company, valued at $6,556,784.82. This represents a 6.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

CMI has been the topic of a number of recent research reports. Robert W. Baird set a $700.00 target price on shares of Cummins in a research note on Wednesday, May 6th. Wells Fargo & Company lifted their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday. Weiss Ratings cut shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Citigroup increased their price objective on shares of Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, Argus raised their price objective on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $731.86.

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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