Waratah Capital Advisors Ltd. Acquires New Stake in Cummins Inc. $CMI

Waratah Capital Advisors Ltd. bought a new stake in Cummins Inc. (NYSE:CMI) during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 28,019 shares of the company’s stock, valued at approximately $11,834,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Flagship Wealth Advisors LLC bought a new position in Cummins in the third quarter worth approximately $28,000. Osterweis Capital Management Inc. bought a new position in Cummins in the 2nd quarter worth $31,000. Guerra Advisors Inc bought a new position in Cummins in the 3rd quarter worth $36,000. Salomon & Ludwin LLC lifted its position in Cummins by 1,333.3% during the third quarter. Salomon & Ludwin LLC now owns 86 shares of the company’s stock valued at $37,000 after purchasing an additional 80 shares in the last quarter. Finally, Tripletail Wealth Management LLC bought a new stake in Cummins during the third quarter valued at about $39,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Insider Transactions at Cummins

In other news, VP Jennifer Mary Bush sold 4,270 shares of the stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. This represents a 22.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Earl Newsome sold 1,300 shares of the firm’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $583.67, for a total transaction of $758,771.00. Following the completion of the transaction, the vice president directly owned 3,389 shares of the company’s stock, valued at approximately $1,978,057.63. This trade represents a 27.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 25,541 shares of company stock valued at $15,161,609 over the last three months. Corporate insiders own 0.41% of the company’s stock.

Cummins Price Performance

CMI stock opened at $599.52 on Wednesday. Cummins Inc. has a one year low of $260.02 and a one year high of $617.98. The company’s fifty day moving average price is $561.29 and its 200-day moving average price is $481.63. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. The company has a market capitalization of $82.83 billion, a PE ratio of 29.22, a price-to-earnings-growth ratio of 1.86 and a beta of 1.13.

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

Cummins Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Friday, February 20th will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, February 20th. Cummins’s payout ratio is 38.99%.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Wells Fargo & Company raised their price objective on Cummins from $599.00 to $630.00 and gave the stock an “overweight” rating in a research note on Friday, January 23rd. Raymond James Financial increased their target price on shares of Cummins from $585.00 to $675.00 and gave the stock an “outperform” rating in a report on Monday, February 9th. Citigroup raised their target price on shares of Cummins from $580.00 to $630.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. UBS Group set a $565.00 price target on shares of Cummins and gave the company a “neutral” rating in a report on Friday, February 6th. Finally, Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 28th. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $588.93.

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.