Lee Danner & Bass Inc. Makes New Investment in Cummins Inc. (NYSE:CMI)

Lee Danner & Bass Inc. acquired a new position in Cummins Inc. (NYSE:CMI) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 172 shares of the company’s stock, valued at approximately $60,000.

A number of other hedge funds have also recently added to or reduced their stakes in CMI. Avior Wealth Management LLC boosted its holdings in Cummins by 44.9% in the third quarter. Avior Wealth Management LLC now owns 342 shares of the company’s stock worth $111,000 after purchasing an additional 106 shares during the period. Prospera Private Wealth LLC acquired a new position in Cummins in the third quarter worth $32,000. LPL Financial LLC lifted its stake in Cummins by 6.1% in the third quarter. LPL Financial LLC now owns 317,000 shares of the company’s stock valued at $102,641,000 after buying an additional 18,294 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Cummins by 0.8% in the third quarter. Charles Schwab Investment Management Inc. now owns 866,715 shares of the company’s stock valued at $280,634,000 after buying an additional 6,608 shares during the last quarter. Finally, Allen Capital Group LLC lifted its stake in Cummins by 5.2% in the third quarter. Allen Capital Group LLC now owns 1,157 shares of the company’s stock valued at $375,000 after buying an additional 57 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CMI. UBS Group cut their target price on Cummins from $432.00 to $400.00 and set a “buy” rating on the stock in a research note on Tuesday, March 18th. Citigroup cut their target price on Cummins from $435.00 to $430.00 and set a “buy” rating on the stock in a research note on Tuesday, January 14th. StockNews.com cut Cummins from a “buy” rating to a “hold” rating in a research note on Friday, March 14th. Evercore ISI raised their target price on Cummins from $408.00 to $451.00 and gave the company an “outperform” rating in a research note on Wednesday, February 19th. Finally, Bank of America upgraded Cummins from an “underperform” rating to a “neutral” rating and raised their target price for the company from $354.00 to $358.00 in a research note on Tuesday, January 14th. Nine analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $389.50.

Cummins Price Performance

Shares of NYSE CMI opened at $321.78 on Friday. The firm’s 50-day simple moving average is $355.99 and its 200 day simple moving average is $347.41. The stock has a market cap of $44.24 billion, a P/E ratio of 11.42, a P/E/G ratio of 2.19 and a beta of 1.01. Cummins Inc. has a fifty-two week low of $261.51 and a fifty-two week high of $387.90. The company has a quick ratio of 0.80, a current ratio of 1.31 and a debt-to-equity ratio of 0.42.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.70 by $0.46. The firm had revenue of $8.45 billion for the quarter, compared to analyst estimates of $8.06 billion. Cummins had a return on equity of 27.12% and a net margin of 11.57%. Cummins’s revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the company earned $4.14 earnings per share. Equities analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 6th. Investors of record on Friday, February 21st were issued a dividend of $1.82 per share. This represents a $7.28 dividend on an annualized basis and a yield of 2.26%. The ex-dividend date of this dividend was Friday, February 21st. Cummins’s payout ratio is currently 25.84%.

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.