Cummins Inc. (NYSE:CMI) insider Tony Satterthwaite sold 830 shares of the stock in a transaction that occurred on Monday, November 5th. The shares were sold at an average price of $141.61, for a total transaction of $117,536.30. Following the transaction, the insider now owns 40,371 shares in the company, valued at approximately $5,716,937.31. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
CMI opened at $143.83 on Tuesday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.54. Cummins Inc. has a 1-year low of $124.72 and a 1-year high of $194.18. The company has a market capitalization of $22.77 billion, a price-to-earnings ratio of 13.54, a price-to-earnings-growth ratio of 0.77 and a beta of 1.16.
Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share for the quarter, topping the Thomson Reuters’ 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 business had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.96 billion. During the same period last year, the firm earned $2.71 earnings per share. The company’s quarterly revenue was up 12.5% on a year-over-year basis. On average, equities analysts anticipate that Cummins Inc. will post 15.34 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Stockholders of record on Thursday, November 15th will be given a dividend of $1.14 per share. The ex-dividend date of this dividend is Wednesday, November 14th. This represents a $4.56 annualized dividend and a dividend yield of 3.17%. Cummins’s payout ratio is 42.94%.
Cummins announced that its Board of Directors has approved a stock buyback plan on Tuesday, October 9th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 8.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.
A number of research analysts recently weighed in on CMI shares. JPMorgan Chase & Co. downgraded shares of Cummins from a “neutral” rating to an “underweight” rating and lowered their price objective for the company from $156.00 to $137.00 in a research report on Friday, August 24th. Wells Fargo & Co set a $158.00 price objective on shares of Cummins and gave the company a “hold” rating in a research report on Wednesday, August 1st. Zacks Investment Research downgraded shares of Cummins from a “buy” rating to a “hold” rating in a research report on Monday, September 3rd. ValuEngine upgraded shares of Cummins from a “strong sell” rating to a “sell” rating in a research report on Friday, September 21st. Finally, Robert W. Baird upgraded shares of Cummins from an “underperform” rating to a “neutral” rating in a research report on Wednesday, October 31st. Two research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eight have issued a buy rating to the stock. Cummins has an average rating of “Hold” and an average target price of $163.60.
Several hedge funds have recently made changes to their positions in the company. Community Bank N.A. raised its position in shares of Cummins by 21.4% during the 3rd quarter. Community Bank N.A. now owns 16,617 shares of the company’s stock valued at $2,427,000 after purchasing an additional 2,925 shares during the period. Penserra Capital Management LLC raised its position in shares of Cummins by 25.2% during the 3rd quarter. Penserra Capital Management LLC now owns 2,572 shares of the company’s stock valued at $375,000 after purchasing an additional 518 shares during the period. Wagner Wealth Management LLC raised its position in shares of Cummins by 46.2% during the 3rd quarter. Wagner Wealth Management LLC now owns 2,413 shares of the company’s stock valued at $352,000 after purchasing an additional 763 shares during the period. Dividend Assets Capital LLC bought a new stake in shares of Cummins during the 3rd quarter valued at $1,137,000. Finally, FTB Advisors Inc. raised its position in shares of Cummins by 12.5% during the 3rd quarter. FTB Advisors Inc. now owns 23,763 shares of the company’s stock valued at $3,523,000 after purchasing an additional 2,634 shares during the period. Hedge funds and other institutional investors own 79.79% of the company’s stock.
Cummins Company Profile
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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