Watchman Group Inc. Has $4.67 Million Stock Position in Cummins Inc. $CMI

Key Points

• Watchman Group Inc. cut its Cummins stake by 18.7% in the fourth quarter, but still held 9,156 shares valued at about $4.67 million.
• Cummins reported better-than-expected earnings for the quarter, with EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, while revenue rose 2.7% year over year.
• The company also announced a quarterly dividend of $2.00 per share, and analysts remain constructive overall, with a consensus rating of Moderate Buy and a price target of $677.87.

Watchman Group Inc. decreased its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 18.7% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 9,156 shares of the company's stock after selling 2,108 shares during the quarter. Cummins comprises about 1.1% of Watchman Group Inc.'s portfolio, making the stock its 21st biggest holding. Watchman Group Inc.'s holdings in Cummins were worth $4,674,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Thompson Investment Management Inc. acquired a new stake in Cummins during the 4th quarter valued at $26,000. Activest Wealth Management lifted its holdings in 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 last quarter. Ares Financial Consulting LLC acquired a new stake in Cummins during the 4th quarter valued at $29,000. Holos Integrated Wealth LLC acquired a new stake in Cummins during the 4th quarter valued at $32,000. Finally, Palouse Capital Management Inc. acquired a new stake in Cummins during the 4th quarter valued at $33,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Performance

NYSE:CMI opened at $677.20 on Tuesday. The stock has a fifty day moving average price of $603.93 and a 200-day moving average price of $557.42. The company has a market cap of $93.45 billion, a price-to-earnings ratio of 35.14, a PEG ratio of 1.76 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a fifty-two week low of $307.90 and a fifty-two week high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company's revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the company posted $5.96 EPS. As a group, equities analysts anticipate that Cummins Inc. will post 28.39 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, May 22nd. Cummins's dividend payout ratio is presently 41.52%.

Insider Activity

In other news, EVP Bonnie J. Fetch sold 652 shares of the company's stock in a transaction 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. This represents a 5.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Brett Michael Merritt sold 701 shares of the company's stock in a transaction on Monday, May 11th. The shares were 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 approximately $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. In the last quarter, insiders sold 22,397 shares of company stock worth $14,465,833. 0.30% of the stock is owned by insiders.

Analyst Ratings Changes

Several brokerages have issued reports on CMI. Zacks Research raised Cummins from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Morgan Stanley raised their price target on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. UBS Group set a $565.00 price target on Cummins and gave the company a "neutral" rating in a report on Friday, February 6th. Truist Financial set a $815.00 price target on Cummins in a research note on Wednesday, May 6th. Finally, Barclays boosted their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $677.87.

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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