D.A. Davidson & CO. Cuts Stock Position in Cummins Inc. $CMI

D.A. Davidson & CO. lessened its holdings in Cummins Inc. (NYSE:CMI) by 10.3% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 271,554 shares of the company’s stock after selling 31,151 shares during the period. Cummins makes up about 0.9% of D.A. Davidson & CO.’s investment portfolio, making the stock its 21st largest position. D.A. Davidson & CO. owned about 0.20% of Cummins worth $146,102,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of CMI. Thompson Investment Management Inc. bought a new stake in Cummins during the fourth quarter worth approximately $26,000. Activest Wealth Management lifted its stake in shares of Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company’s stock valued at $26,000 after purchasing an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC boosted 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 worth $26,000 after purchasing an additional 45 shares during the period. Wellington Shields Capital Management LLC bought a new position in shares of Cummins during the 4th quarter valued at approximately $27,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in Cummins during the 4th quarter valued at $28,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. UBS Group restated a “buy” rating on shares of Cummins in a research report on Wednesday, June 17th. Zacks Research downgraded shares of Cummins from a “strong-buy” rating to a “hold” rating in a research note on Monday. Robert W. Baird set a $700.00 target price on shares of Cummins in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price target on shares of Cummins from $600.00 to $725.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings lowered shares of Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $739.43.

Cummins Stock Performance

CMI stock opened at $666.12 on Thursday. Cummins Inc. has a twelve month low of $340.39 and a twelve month high of $737.76. The firm has a market cap of $91.92 billion, a price-to-earnings ratio of 34.57, a PEG ratio of 1.65 and a beta of 1.22. The business’s fifty day simple moving average is $678.35 and its two-hundred day simple moving average is $613.12. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business’s revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the firm earned $5.96 earnings per share. Analysts predict that Cummins Inc. will post 29.35 earnings per share for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a $2.20 dividend. This is a positive change from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a yield of 1.3%. Cummins’s dividend payout ratio is presently 41.52%.

Insider Buying and Selling

In related news, VP Jennifer Mary Bush sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the transaction, the vice president owned 11,986 shares of the company’s stock, valued at $8,344,773.06. This represents a 29.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Nathan R. Stoner sold 607 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $694.06, for a total value of $421,294.42. Following the transaction, the vice president owned 9,447 shares in the company, valued at $6,556,784.82. The trade was a 6.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 13,579 shares of company stock worth $9,377,684 over the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins was upgraded to Zacks Rank #2 (Buy), signaling improving earnings expectations and raising the odds that the stock could move higher if the company continues to deliver strong results. Article Title
• Positive Sentiment: Investors are also focused on Cummins’ 10% dividend hike, which supports the stock’s appeal as a cash-return story and may help sentiment around the shares. Article Title
• Positive Sentiment: Analysts say AI data center power demand could be an additional growth driver for Cummins, while raised 2030 targets reinforce the long-term earnings outlook. Article Title
• Neutral Sentiment: Several reports highlighted Cummins’ history of earnings beats and the possibility of another upside surprise in the next quarterly report, which could be a supportive near-term catalyst if management delivers again. Article Title
• Neutral Sentiment: One note said Cummins was downgraded from strong-buy to hold by Zacks Research, which is a mild headwind but does not change the broader positive tone around the name. Article Title
• Positive Sentiment: Cummins’ recently announced quarterly dividend increase and commentary that the stock may be undervalued are also helping support investor confidence in the shares. Article Title

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.