Welch & Forbes LLC Reduces Stock Holdings in Cummins Inc. $CMI

Welch & Forbes LLC lessened its stake in shares of Cummins Inc. (NYSE:CMI) by 3.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 42,811 shares of the company’s stock after selling 1,559 shares during the quarter. Welch & Forbes LLC’s holdings in Cummins were worth $23,033,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Thompson Investment Management Inc. acquired a new stake in shares of Cummins in the 4th quarter valued at about $26,000. Activest Wealth Management grew its position in shares of Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock worth $26,000 after acquiring an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC increased its holdings in shares of Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock valued at $26,000 after acquiring an additional 45 shares during the period. Wellington Shields Capital Management LLC purchased a new stake in Cummins in the 4th quarter valued at $27,000. Finally, Key Financial Inc boosted its stake in Cummins by 62.5% during the 1st quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after purchasing an additional 20 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

CMI has been the topic of a number of recent research reports. Morgan Stanley lifted their price objective on shares of Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Barclays boosted their price target on Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Citigroup upped their price objective on Cummins from $710.00 to $770.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. UBS Group reiterated a “buy” rating on shares of Cummins in a research note on Wednesday, June 17th. Finally, Wells Fargo & Company upped their price target on Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $738.00.

Cummins Stock Performance

NYSE CMI traded up $3.54 on Friday, hitting $676.93. 572,903 shares of the company’s stock were exchanged, compared to its average volume of 1,073,951. The firm has a market cap of $93.41 billion, a price-to-earnings ratio of 35.13, a P/E/G ratio of 1.65 and a beta of 1.22. The firm’s 50-day moving average price is $679.54 and its two-hundred day moving average price is $609.34. Cummins Inc. has a fifty-two week low of $334.70 and a fifty-two week high of $737.76. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion during the quarter, compared to analysts’ expectations of $8.37 billion. During the same period last year, the firm earned $5.96 EPS. The company’s quarterly revenue was up 2.7% compared to the same quarter last year. On average, research analysts expect that Cummins Inc. will post 29.32 EPS for the current year.

Cummins Announces Dividend

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

Insider Activity at Cummins

In other news, VP Donald G. Jackson sold 730 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the transaction, the vice president directly owned 8,316 shares of the company’s stock, valued at $5,912,010.72. This represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Brett Michael Merritt sold 701 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the completion of the transaction, the insider owned 10,404 shares of the company’s stock, valued at $7,165,755. This represents a 6.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by insiders.

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.