GAMMA Investing LLC Takes $250,000 Position in Cummins Inc. (NYSE:CMI)

GAMMA Investing LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,044 shares of the company’s stock, valued at approximately $250,000.

Other large investors also recently modified their holdings of the company. OFI Invest Asset Management bought a new position in shares of Cummins in the 3rd quarter worth $25,000. Silver Oak Securities Incorporated purchased a new stake in Cummins in the 3rd quarter worth about $28,000. Global Wealth Strategies & Associates purchased a new stake in Cummins in the 3rd quarter worth about $29,000. Annis Gardner Whiting Capital Advisors LLC purchased a new position in Cummins during the 3rd quarter valued at about $39,000. Finally, Peoples Bank KS purchased a new position in Cummins during the 3rd quarter valued at about $43,000. Institutional investors and hedge funds own 83.46% of the company’s stock.

Insider Activity

In other Cummins news, SVP Tony Satterthwaite sold 37,450 shares of Cummins stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the completion of the sale, the senior vice president now directly owns 73,741 shares of the company’s stock, valued at approximately $19,545,052.05. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In other Cummins news, Director Daniel William Fisher bought 562 shares of the company’s stock in a transaction that occurred on Tuesday, February 27th. The shares were purchased at an average cost of $266.57 per share, for a total transaction of $149,812.34. Following the purchase, the director now directly owns 1,068 shares in the company, valued at $284,696.76. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Tony Satterthwaite sold 37,450 shares of Cummins stock in a transaction dated Wednesday, February 21st. The stock was sold at an average price of $265.05, for a total value of $9,926,122.50. Following the sale, the senior vice president now directly owns 73,741 shares of the company’s stock, valued at approximately $19,545,052.05. The disclosure for this sale can be found here. Insiders sold 51,289 shares of company stock valued at $13,576,838 in the last ninety days. Insiders own 0.56% of the company’s stock.

Cummins Stock Performance

Shares of CMI opened at $291.40 on Friday. The company has a quick ratio of 0.74, a current ratio of 1.18 and a debt-to-equity ratio of 0.48. The business has a 50-day simple moving average of $282.84 and a two-hundred day simple moving average of $250.18. The stock has a market cap of $39.85 billion, a price-to-earnings ratio of 56.25, a PEG ratio of 1.99 and a beta of 1.04. Cummins Inc. has a 52 week low of $203.18 and a 52 week high of $304.24.

Cummins (NYSE:CMI) last released its 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 for the quarter, compared to analysts’ expectations of $8.10 billion. During the same quarter in the prior year, the business posted $4.52 EPS. The business’s revenue for the quarter was up 9.9% compared to the same quarter last year. On average, analysts expect that Cummins Inc. will post 18.34 EPS for the current year.

Cummins Announces Dividend

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

Analyst Ratings Changes

CMI has been the subject of a number of research analyst reports. TheStreet downgraded Cummins from an “a-” rating to a “c+” rating in a research report on Tuesday, February 6th. TD Cowen boosted their target price on Cummins from $260.00 to $272.00 and gave the company an “outperform” rating in a research note on Wednesday, February 7th. Evercore ISI upped their price target on Cummins from $231.00 to $244.00 and gave the stock an “in-line” rating in a research note on Tuesday, February 20th. JPMorgan Chase & Co. boosted their target price on Cummins from $245.00 to $275.00 and gave the stock an “underweight” rating in a report on Monday, March 25th. Finally, UBS Group raised Cummins from a “neutral” rating to a “buy” rating and upped their price target for the company from $254.00 to $321.00 in a report on Friday, March 15th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, Cummins has an average rating of “Hold” and an average target price of $279.70.

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.