SFE Investment Counsel Cuts Stock Position in Cummins Inc. (NYSE:CMI)

SFE Investment Counsel lessened its stake in shares of Cummins Inc. (NYSE:CMI) by 1.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 26,782 shares of the company’s stock after selling 470 shares during the quarter. Cummins comprises approximately 1.7% of SFE Investment Counsel’s portfolio, making the stock its 18th biggest position. SFE Investment Counsel’s holdings in Cummins were worth $6,416,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. OFI Invest Asset Management purchased a new stake in shares of Cummins during the third quarter worth approximately $25,000. Silver Oak Securities Incorporated purchased a new position in Cummins in the third quarter worth $28,000. Tyler Stone Wealth Management purchased a new position in Cummins in the second quarter worth $30,000. Global Wealth Strategies & Associates purchased a new position in Cummins in the third quarter worth $29,000. Finally, Quarry LP purchased a new position in Cummins in the first quarter worth $32,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on CMI. StockNews.com cut Cummins from a “buy” rating to a “hold” rating in a research report on Monday, March 4th. Morgan Stanley assumed coverage on Cummins in a report on Monday, January 8th. They issued an “overweight” rating and a $278.00 price objective on the stock. Truist Financial assumed coverage on Cummins in a report on Thursday, March 14th. They issued a “hold” rating and a $303.00 price objective on the stock. Bank of America downgraded Cummins from a “neutral” rating to an “underperform” rating and cut their price objective for the stock from $243.00 to $225.00 in a report on Friday, January 19th. Finally, TheStreet downgraded Cummins from an “a-” rating to a “c+” rating in a report on Tuesday, February 6th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $279.70.

Cummins Stock Down 0.1 %

CMI stock traded down $0.28 during midday trading on Thursday, hitting $291.08. 451,860 shares of the company’s stock were exchanged, compared to its average volume of 2,813,392. The stock has a market capitalization of $39.81 billion, a price-to-earnings ratio of 56.69, a price-to-earnings-growth ratio of 2.01 and a beta of 1.04. The firm has a 50 day moving average price of $278.71 and a 200-day moving average price of $247.63. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. Cummins Inc. has a 12-month low of $203.18 and a 12-month high of $304.24.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a return on equity of 25.68% and a net margin of 2.16%. The business had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.10 billion. During the same period in the previous year, the company posted $4.52 EPS. The company’s revenue for the quarter was up 9.9% compared to the same quarter last year. On average, analysts anticipate that Cummins Inc. will post 18.29 EPS for the current year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Stockholders of record on Friday, February 23rd were paid a $1.68 dividend. The ex-dividend date was Thursday, February 22nd. This represents a $6.72 annualized dividend and a dividend yield of 2.31%. Cummins’s payout ratio is 129.73%.

Insider Activity

In other news, Director Daniel William Fisher acquired 562 shares of the business’s stock in a transaction dated Tuesday, February 27th. The stock was acquired at an average price of $266.57 per share, for a total transaction of $149,812.34. Following the completion of the acquisition, the director now directly owns 1,068 shares in the company, valued at approximately $284,696.76. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. In other Cummins news, Director Daniel William Fisher acquired 562 shares of Cummins stock in a transaction that occurred on Tuesday, February 27th. The stock was purchased at an average cost of $266.57 per share, with a total value of $149,812.34. Following the purchase, the director now owns 1,068 shares in the company, valued at $284,696.76. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Jennifer Rumsey sold 739 shares of the stock in a transaction dated Friday, February 16th. The shares were sold at an average price of $266.91, for a total value of $197,246.49. Following the transaction, the chief executive officer now directly owns 2,698 shares in the company, valued at approximately $720,123.18. The disclosure for this sale can be found here. Insiders sold a total of 51,289 shares of company stock worth $13,576,838 over the last 90 days. 0.56% of the stock is currently owned by company insiders.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.