Freestone Grove Partners LP Buys New Stake in Cummins Inc. (NYSE:CMI)

Freestone Grove Partners LP purchased a new stake in Cummins Inc. (NYSE:CMI) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 75,820 shares of the company’s stock, valued at approximately $26,431,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Stock Yards Bank & Trust Co. boosted its position in shares of Cummins by 1.8% in the 3rd quarter. Stock Yards Bank & Trust Co. now owns 5,089 shares of the company’s stock valued at $1,648,000 after purchasing an additional 88 shares during the period. Pine Valley Investments Ltd Liability Co acquired a new stake in shares of Cummins in the third quarter valued at approximately $209,000. Wilmington Savings Fund Society FSB grew its position in shares of Cummins by 18.9% during the third quarter. Wilmington Savings Fund Society FSB now owns 4,990 shares of the company’s stock worth $1,616,000 after acquiring an additional 794 shares during the last quarter. Destination Wealth Management acquired a new position in shares of Cummins in the 3rd quarter valued at $227,000. Finally, Synovus Financial Corp raised its position in Cummins by 1.5% in the 3rd quarter. Synovus Financial Corp now owns 15,891 shares of the company’s stock valued at $5,146,000 after purchasing an additional 230 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Price Performance

Cummins stock opened at $294.90 on Friday. The firm has a market capitalization of $40.62 billion, a PE ratio of 10.47, a P/E/G ratio of 2.19 and a beta of 1.07. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $387.90. The firm’s 50-day simple moving average is $311.69 and its 200 day simple moving average is $342.61. 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 announced its quarterly earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.70 by $0.46. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The company had revenue of $8.45 billion for the quarter, compared to the consensus estimate of $8.06 billion. During the same quarter in the prior year, the firm earned $4.14 earnings per share. The company’s revenue for the quarter was down 1.1% compared to the same quarter last year. On average, equities research analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 6th. Shareholders of record on Friday, February 21st were given a dividend of $1.82 per share. This represents a $7.28 annualized dividend and a yield of 2.47%. The ex-dividend date was Friday, February 21st. Cummins’s payout ratio is 25.84%.

Analysts Set New Price Targets

CMI has been the subject of several analyst reports. Citigroup reduced their price objective on Cummins from $360.00 to $320.00 and set a “buy” rating for the company in a research note on Tuesday, April 8th. Bank of America raised Cummins from an “underperform” rating to a “neutral” rating and lifted their price objective for the company from $354.00 to $358.00 in a report on Tuesday, January 14th. Barclays increased their target price on Cummins from $310.00 to $381.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 5th. UBS Group downgraded Cummins from a “buy” rating to a “sell” rating and decreased their price target for the company from $400.00 to $240.00 in a research note on Monday, April 7th. Finally, StockNews.com cut Cummins from a “buy” rating to a “hold” rating in a research report on Tuesday, March 25th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat, Cummins currently has a consensus rating of “Hold” and an average target price of $346.00.

Cummins Profile

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.