First American Bank Increases Stock Position in Cummins Inc. $CMI

First American Bank raised its position in Cummins Inc. (NYSE:CMI) by 14.7% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 16,194 shares of the company’s stock after buying an additional 2,079 shares during the period. First American Bank’s holdings in Cummins were worth $6,840,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Osterweis Capital Management Inc. purchased a new position in shares of Cummins in the 2nd quarter valued at about $31,000. Tripletail Wealth Management LLC acquired a new stake in Cummins in the third quarter valued at approximately $39,000. CNB Bank purchased a new stake in shares of Cummins in the second quarter valued at approximately $43,000. Flaharty Asset Management LLC purchased a new stake in shares of Cummins in the first quarter valued at approximately $47,000. Finally, State of Wyoming purchased a new position in shares of Cummins during the 1st quarter valued at approximately $50,000. Institutional investors and hedge funds own 83.46% of the company’s stock.

Cummins Price Performance

Shares of NYSE CMI opened at $514.28 on Tuesday. The firm has a market capitalization of $70.99 billion, a PE ratio of 26.69, a price-to-earnings-growth ratio of 2.04 and a beta of 1.10. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.11 and a current ratio of 1.77. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $526.50. The stock’s 50-day simple moving average is $479.48 and its 200-day simple moving average is $415.63.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. Cummins had a net margin of 7.95% and a return on equity of 26.02%. The firm had revenue of $8.32 billion during the quarter, compared to analysts’ expectations of $7.97 billion. During the same quarter in the prior year, the business earned $5.86 EPS. Cummins’s quarterly revenue was down 1.6% compared to the same quarter last year. As a group, equities research analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 4th. Shareholders of record on Friday, November 21st were paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, November 21st. Cummins’s dividend payout ratio is currently 41.52%.

Analysts Set New Price Targets

Several brokerages recently commented on CMI. Truist Financial boosted their price target on shares of Cummins from $628.00 to $653.00 and gave the stock a “buy” rating in a report on Thursday, December 18th. Raymond James Financial raised shares of Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 target price for the company in a research note on Monday, December 22nd. Wall Street Zen raised Cummins from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $475.00 price objective on shares of Cummins in a research note on Friday, November 7th. Finally, Argus lifted their price target on Cummins from $459.00 to $573.00 and gave the stock a “buy” rating in a report on Tuesday, November 25th. Thirteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Cummins has an average rating of “Moderate Buy” and a consensus price target of $492.75.

Insiders Place Their Bets

In other news, CEO Jennifer Rumsey sold 4,570 shares of Cummins stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the sale, the chief executive officer owned 42,880 shares in the company, valued at $20,320,403.20. This trade represents a 9.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Mark Andrew Smith sold 13,110 shares of the stock in a transaction dated Thursday, November 6th. The shares were sold at an average price of $470.66, for a total value of $6,170,352.60. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares of the company’s stock, valued at $14,864,384.12. This represents a 29.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 27,330 shares of company stock valued at $12,649,764. 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.