Marshfield Associates Increases Position in Cummins Inc. $CMI

Marshfield Associates boosted its stake in shares of Cummins Inc. (NYSE:CMI) by 4.6% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,104,552 shares of the company’s stock after purchasing an additional 48,493 shares during the quarter. Cummins makes up approximately 8.1% of Marshfield Associates’ holdings, making the stock its 4th largest position. Marshfield Associates owned approximately 0.80% of Cummins worth $466,530,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in CMI. Norges Bank bought a new position in shares of Cummins during the second quarter worth about $505,941,000. Boston Partners bought a new stake in Cummins in the 3rd quarter valued at about $473,471,000. London Co. of Virginia acquired a new position in Cummins during the 3rd quarter valued at about $231,732,000. American Century Companies Inc. grew its position in Cummins by 138.8% in the 2nd quarter. American Century Companies Inc. now owns 909,653 shares of the company’s stock worth $297,912,000 after purchasing an additional 528,689 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in Cummins by 50.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company’s stock worth $612,715,000 after purchasing an additional 488,430 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CMI. Wells Fargo & Company lifted their price target on Cummins from $599.00 to $630.00 and gave the company an “overweight” rating in a report on Friday, January 23rd. Raymond James Financial raised their target price on Cummins from $585.00 to $675.00 and gave the company an “outperform” rating in a research report on Monday, February 9th. UBS Group set a $565.00 target price on Cummins and gave the company a “neutral” rating in a research note on Friday, February 6th. Wall Street Zen lowered Cummins from a “strong-buy” rating to a “buy” rating in a research report on Sunday, March 8th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Cummins in a research note on Monday, December 29th. Eleven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $588.93.

Cummins Price Performance

Shares of NYSE:CMI opened at $545.02 on Tuesday. The stock has a market cap of $75.30 billion, a price-to-earnings ratio of 26.56, a PEG ratio of 1.70 and a beta of 1.12. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $617.98. The stock’s 50 day moving average price is $574.35 and its 200 day moving average price is $497.59.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. During the same period last year, the company posted $5.16 EPS. The firm’s quarterly revenue was up 1.1% on a year-over-year basis. Equities research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were paid a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, February 20th. This represents a $8.00 annualized dividend and a yield of 1.5%. Cummins’s dividend payout ratio (DPR) is currently 38.99%.

Insider Activity

In other news, VP Amy Rochelle Davis sold 4,054 shares of the firm’s stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares in the company, valued at approximately $8,873,101.38. This trade represents a 20.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Earl Newsome sold 1,300 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $583.67, for a total transaction of $758,771.00. Following the completion of the sale, the vice president owned 3,389 shares in the company, valued at $1,978,057.63. The trade was a 27.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 31,195 shares of company stock valued at $18,397,489 over the last quarter. Insiders own 0.41% of the company’s stock.

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.