Wedge Capital Management L L P NC Trims Position in Cummins Inc. $CMI

Key Points

• Wedge Capital Management trimmed its stake in Cummins by 26.2% in Q4, selling 8,021 shares and now holding 22,537 shares valued at about $11.5 million.
• Corporate insiders have been net sellers recently—insiders sold 31,195 shares worth roughly $18.4 million in the last 90 days, leaving insiders with just 0.41% ownership.
• Cummins recently beat quarterly EPS estimates ($5.81 vs. $5.17), pays a $2.00 quarterly dividend (1.5% yield), and carries an analyst consensus of "Moderate Buy" with an average target of about $588.93 (individual targets range as high as $696).

Wedge Capital Management L L P NC lessened its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 26.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 22,537 shares of the company's stock after selling 8,021 shares during the quarter. Wedge Capital Management L L P NC's holdings in Cummins were worth $11,504,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in CMI. Gilbert & Cook Inc. raised its holdings in Cummins by 1.0% in the 4th quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company's stock worth $947,000 after purchasing an additional 19 shares in the last quarter. Sound View Wealth Advisors Group LLC boosted its stake in shares of Cummins by 2.1% during the 4th quarter. Sound View Wealth Advisors Group LLC now owns 981 shares of the company's stock valued at $501,000 after purchasing an additional 20 shares in the last quarter. United Capital Management of KS Inc. boosted its stake in shares of Cummins by 2.0% during the 3rd quarter. United Capital Management of KS Inc. now owns 1,149 shares of the company's stock valued at $485,000 after purchasing an additional 22 shares in the last quarter. Betterment LLC increased its position in shares of Cummins by 3.5% during the third quarter. Betterment LLC now owns 673 shares of the company's stock valued at $284,000 after buying an additional 23 shares during the period. Finally, Stock Yards Bank & Trust Co. increased its position in shares of Cummins by 0.4% during the third quarter. Stock Yards Bank & Trust Co. now owns 5,917 shares of the company's stock valued at $2,499,000 after buying an additional 24 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total value of $2,275,672.36. Following the sale, the vice president directly owned 15,807 shares of the company's stock, valued at approximately $8,873,101.38. This represents a 20.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Donald G. Jackson sold 1,600 shares of the firm's 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 owned 7,214 shares of the company's stock, valued at $4,329,337.82. The trade was a 18.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 31,195 shares of company stock valued at $18,397,489 in the last ninety days. Corporate insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

Several analysts have commented on CMI shares. Wolfe Research lowered shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective for the company. in a report on Monday, January 26th. Barclays upped their target price on Cummins from $546.00 to $610.00 and gave the stock an "overweight" rating in a report on Friday, January 23rd. Citigroup raised their target price on Cummins from $580.00 to $630.00 and gave the company a "buy" rating in a research note on Tuesday, January 13th. JPMorgan Chase & Co. lifted their price target on Cummins from $485.00 to $580.00 and gave the company a "neutral" rating in a research report on Wednesday, January 14th. Finally, Argus set a $696.00 price target on Cummins in a research note on Tuesday, February 10th. Eleven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Moderate Buy" and an average target price of $588.93.

Cummins Trading Down 1.3%

NYSE:CMI opened at $523.02 on Friday. The firm has a market capitalization of $72.26 billion, a P/E ratio of 25.49, a PEG ratio of 1.66 and a beta of 1.12. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. Cummins Inc. has a one year low of $260.02 and a one year high of $617.98. The company's 50-day simple moving average is $571.03 and its 200 day simple moving average is $505.93.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The business had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter last year, the firm earned $5.16 earnings per share. The business's revenue for the quarter was up 1.1% on a year-over-year basis. As a group, analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, February 20th. Cummins's dividend payout ratio (DPR) is 38.99%.

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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