Baird Financial Group Inc. lifted its stake in Cummins Inc. (NYSE:CMI) by 4.7% during the third quarter, Holdings Channel reports. The fund owned 14,224 shares of the company’s stock after purchasing an additional 638 shares during the quarter. Baird Financial Group Inc.’s holdings in Cummins were worth $2,105,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors also recently bought and sold shares of the company. Edge Wealth Management LLC bought a new stake in Cummins in the third quarter worth $102,000. Pflug Koory LLC boosted its holdings in Cummins by 604.0% in the third quarter. Pflug Koory LLC now owns 1,056 shares of the company’s stock worth $154,000 after purchasing an additional 906 shares in the last quarter. Qube Research & Technologies Ltd bought a new stake in Cummins in the second quarter worth $155,000. Centaurus Financial Inc. boosted its holdings in Cummins by 73.2% in the second quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock worth $164,000 after purchasing an additional 520 shares in the last quarter. Finally, Monetary Management Group Inc. boosted its holdings in Cummins by 80.9% in the second quarter. Monetary Management Group Inc. now owns 1,375 shares of the company’s stock worth $183,000 after purchasing an additional 615 shares in the last quarter. 80.72% of the stock is currently owned by institutional investors and hedge funds.
CMI stock opened at $138.60 on Monday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.54 and a quick ratio of 0.94. Cummins Inc. has a 52-week low of $124.72 and a 52-week high of $194.18. The stock has a market cap of $22.25 billion, a price-to-earnings ratio of 13.05, a PEG ratio of 0.76 and a beta of 1.17.
Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $3.76 by $0.29. Cummins had a net margin of 5.57% and a return on equity of 29.17%. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.96 billion. During the same period in the prior year, the company earned $2.71 earnings per share. The business’s quarterly revenue was up 12.5% compared to the same quarter last year. As a group, equities analysts anticipate that Cummins Inc. will post 15.34 EPS for the current fiscal year.
Cummins announced that its board has initiated a share buyback plan on Tuesday, October 9th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to purchase up to 8.3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.
The company also recently declared a quarterly dividend, which was paid on Monday, December 3rd. Shareholders of record on Thursday, November 15th were issued a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 3.29%. The ex-dividend date of this dividend was Wednesday, November 14th. Cummins’s dividend payout ratio (DPR) is 42.94%.
In other Cummins news, CAO Marya M. Rose sold 10,970 shares of the company’s stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $155.00, for a total transaction of $1,700,350.00. Following the completion of the sale, the chief accounting officer now directly owns 26,035 shares in the company, valued at $4,035,425. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Tony Satterthwaite sold 830 shares of the company’s stock in a transaction dated Monday, November 5th. The shares were sold at an average price of $141.61, for a total transaction of $117,536.30. Following the sale, the insider now owns 40,371 shares of the company’s stock, valued at $5,716,937.31. The disclosure for this sale can be found here. Insiders have sold 41,541 shares of company stock valued at $6,302,659 over the last 90 days. Corporate insiders own 0.62% of the company’s stock.
A number of equities research analysts recently issued reports on CMI shares. Stifel Nicolaus reiterated a “buy” rating and issued a $172.00 price objective on shares of Cummins in a report on Monday, October 1st. Zacks Investment Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $166.00 price objective for the company in a report on Wednesday, September 26th. Loop Capital started coverage on shares of Cummins in a report on Wednesday, October 17th. They issued a “buy” rating and a $170.00 price objective for the company. Finally, Oppenheimer reiterated a “buy” rating and issued a $164.00 price objective on shares of Cummins in a report on Tuesday, October 30th. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eight have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $163.16.
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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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