Insider Selling: Cummins Inc. (NYSE:CMI) VP Sells 438 Shares of Stock

Cummins Inc. (NYSE:CMI) VP Mark J. Osowick sold 438 shares of the stock in a transaction on Friday, February 14th. The stock was sold at an average price of $165.88, for a total value of $72,655.44. Following the completion of the transaction, the vice president now owns 7,392 shares of the company’s stock, valued at approximately $1,226,184.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Cummins stock opened at $166.78 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.50. The firm has a market capitalization of $25.45 billion, a price-to-earnings ratio of 11.57, a price-to-earnings-growth ratio of 2.11 and a beta of 1.15. Cummins Inc. has a fifty-two week low of $141.14 and a fifty-two week high of $186.73. The stock’s fifty day moving average is $170.59 and its two-hundred day moving average is $168.05.

Cummins (NYSE:CMI) last posted its earnings results on Tuesday, February 4th. The company reported $2.56 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.42 by $0.14. The company had revenue of $5.58 billion for the quarter, compared to analyst estimates of $5.39 billion. Cummins had a return on equity of 26.49% and a net margin of 9.59%. Cummins’s revenue was down 8.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.48 earnings per share. As a group, sell-side analysts forecast that Cummins Inc. will post 12.1 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 5th. Shareholders of record on Friday, February 21st will be issued a $1.311 dividend. This represents a $5.24 annualized dividend and a yield of 3.14%. The ex-dividend date of this dividend is Thursday, February 20th. Cummins’s dividend payout ratio (DPR) is 34.82%.

Cummins announced that its board has authorized a stock buyback plan on Tuesday, December 10th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 7.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

A number of institutional investors have recently bought and sold shares of the business. TRUE Private Wealth Advisors acquired a new stake in shares of Cummins during the fourth quarter valued at $26,000. Aigen Investment Management LP acquired a new stake in shares of Cummins during the fourth quarter valued at $29,000. Allred Capital Management LLC acquired a new stake in Cummins in the 4th quarter worth about $31,000. Simon Quick Advisors LLC acquired a new stake in Cummins in the 4th quarter worth about $42,000. Finally, Steward Partners Investment Advisory LLC boosted its stake in Cummins by 31.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 258 shares of the company’s stock worth $46,000 after buying an additional 61 shares during the last quarter. 82.98% of the stock is currently owned by institutional investors.

Several research analysts have issued reports on CMI shares. Cowen started coverage on Cummins in a research report on Wednesday, February 5th. They issued a “hold” rating and a $173.00 price objective for the company. Cfra cut Cummins from a “buy” rating to a “hold” rating in a research report on Wednesday, October 30th. Raymond James started coverage on Cummins in a research report on Wednesday, November 27th. They issued a “market perform” rating for the company. Citigroup cut their price objective on Cummins from $200.00 to $190.00 and set a “buy” rating for the company in a research report on Friday, February 7th. Finally, Royal Bank of Canada reiterated a “hold” rating and issued a $185.00 price objective (up previously from $167.00) on shares of Cummins in a research report on Monday, November 25th. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating and eight have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $183.19.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

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