Two Point Capital Management Inc. Purchases New Stake in Cummins Inc. (NYSE:CMI)

Two Point Capital Management Inc. purchased a new stake in Cummins Inc. (NYSE:CMI) in the 4th quarter, HoldingsChannel.com reports. The fund purchased 32,094 shares of the company’s stock, valued at approximately $7,689,000. Cummins accounts for about 3.5% of Two Point Capital Management Inc.’s investment portfolio, making the stock its 14th largest holding.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Balentine LLC boosted its position in shares of Cummins by 3.3% during the third quarter. Balentine LLC now owns 3,929 shares of the company’s stock worth $898,000 after buying an additional 127 shares during the period. Sequoia Financial Advisors LLC raised its stake in shares of Cummins by 200.9% in the fourth quarter. Sequoia Financial Advisors LLC now owns 5,790 shares of the company’s stock valued at $1,387,000 after acquiring an additional 3,866 shares in the last quarter. Allen Mooney & Barnes Investment Advisors LLC acquired a new stake in shares of Cummins in the third quarter valued at $9,048,000. Capital Advisors Inc. OK acquired a new stake in shares of Cummins in the fourth quarter valued at $24,915,000. Finally, SG Americas Securities LLC raised its stake in shares of Cummins by 227.6% in the fourth quarter. SG Americas Securities LLC now owns 24,281 shares of the company’s stock valued at $5,817,000 after acquiring an additional 16,869 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on CMI shares. TheStreet cut Cummins from an “a-” rating to a “c+” rating in a research note on Tuesday, February 6th. TD Cowen raised their price target on Cummins from $260.00 to $272.00 and gave the company an “outperform” rating in a research note on Wednesday, February 7th. The Goldman Sachs Group raised their price target on Cummins from $270.00 to $306.00 and gave the company a “neutral” rating in a research note on Tuesday, April 16th. JPMorgan Chase & Co. raised their price target on Cummins from $245.00 to $275.00 and gave the company an “underweight” rating in a research note on Monday, March 25th. Finally, Bank of America cut Cummins from a “neutral” rating to an “underperform” rating and cut their price target for the company from $243.00 to $225.00 in a research note on Friday, January 19th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Cummins has an average rating of “Hold” and an average target price of $279.70.

Insider Transactions at Cummins

In related news, VP Sharon R. Barner sold 2,100 shares of the business’s stock in a transaction dated Wednesday, February 28th. The shares were sold at an average price of $271.29, for a total value of $569,709.00. Following the completion of the transaction, the vice president now owns 16,899 shares of the company’s stock, valued at approximately $4,584,529.71. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, Director Daniel William Fisher acquired 562 shares of the business’s stock in a transaction dated Tuesday, February 27th. The shares were acquired at an average cost of $266.57 per share, for a total transaction of $149,812.34. Following the acquisition, the director now directly owns 1,068 shares in the company, valued at approximately $284,696.76. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Sharon R. Barner sold 2,100 shares of the stock in a transaction dated Wednesday, February 28th. The stock was sold at an average price of $271.29, for a total transaction of $569,709.00. Following the transaction, the vice president now owns 16,899 shares in the company, valued at $4,584,529.71. The disclosure for this sale can be found here. Insiders sold 51,289 shares of company stock valued at $13,576,838 in the last 90 days. 0.56% of the stock is currently owned by insiders.

Cummins Stock Performance

CMI traded down $0.30 during trading on Friday, reaching $291.31. The company’s stock had a trading volume of 271,375 shares, compared to its average volume of 2,685,304. Cummins Inc. has a 52-week low of $203.18 and a 52-week high of $304.24. The company’s fifty day moving average price is $282.84 and its 200-day moving average price is $250.18. The company has a market capitalization of $39.84 billion, a price-to-earnings ratio of 56.25, a price-to-earnings-growth ratio of 1.99 and a beta of 1.04. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.74 and a current ratio of 1.18.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Tuesday, February 6th. The company reported $4.14 earnings per share for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.27). The business had revenue of $8.54 billion during the quarter, compared to analysts’ expectations of $8.10 billion. Cummins had a net margin of 2.16% and a return on equity of 25.68%. Cummins’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.52 EPS. On average, equities analysts forecast that Cummins Inc. will post 18.34 earnings per share for the current fiscal year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Friday, February 23rd were paid a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.31%. The ex-dividend date was Thursday, February 22nd. Cummins’s payout ratio is currently 129.73%.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.