NovaPoint Capital LLC has recently increased its position in Cummins Inc. (NYSE:CMI) by an astonishing 721.3% during the fourth quarter, according to the firm’s most recent disclosure with the SEC. NovaPoint Capital currently holds around 9,576 shares of the company’s stock after purchasing an additional 8,410 shares within the time frame. These holdings are estimated to be worth approximately $2,320,000 as of the latest SEC filing.
Cummins last released its quarterly earnings data on February 6th and reported $4.52 earnings per share (EPS) for the quarter, meeting analysts’ estimates. The business had a revenue of $7.77 billion for that period compared to analysts’ expectations of $7.21 billion. Cummins had a return on equity of 24.58% and a net margin of 7.66%. During this same period in the previous fiscal year, EPS was reported at $2.85.
Furthermore, insiders have sold a significant amount of shares lately in several transactions with impressive sizes resulting to millions of dollars’ worth trade each time: Director Georgia R.Nelson seeing significant gains from selling over 1,933 shares at an average price of $251.64 amounting $486420; This allowed her direct ownership increased up to 21,742 from what is now valued at around $5,471,156.Within a few days later Vice President Sharon R.Barner sold more than double Nelson’s volume but at reasonably high prices; The sale amounted to $1,524523 and prompted Barner’s ownership stake close up around four million dollars.
Insiders owning about 1.12%of company stock lend further interest into what looks like good news coming for Cummins Inc., potentially encouraging investors analyze it further.Their unique prospects could open opportunities for exciting portfolio additions or entrench long-term sustainable advantages for individual investors amidst market volatility. Cummins is expected to continue to perform well, having an average annual rating of “Buy” with a 12-month target price of $271.76, creating space for profitable results for stakeholders.
Cummins Inc. attracts billions in investments from top hedge funds and institutional investors
Cummins Inc, a global power leader in the design, manufacturing and distribution of diesel and natural gas engines recently reported interest by some hedge funds and other institutional investors such as Vanguard Group, Price T Rowe Associates, Charles Schwab Investment Management Inc., LSV Asset Management, and First Trust Advisors LP. These firms made various investments involving shares of the company’s stock worth billions of dollars during the last quarter. This brought Cummins’ growth to 1.7%, despite a market cap of $33.17 billion that could have slowed down its expansion rate.
Cummins’ stock currently trades at $234.36 per share with a market average volume of 998,159 shares. It has a beta value of 1.00 and PE ratio of 15.28 with a P/E/G ratio averaging at 1.31 over time intervals. Its current ratio stands at 1.27 while Quick Ratio measures 0.77 revealing the company’s short-term liquidity position.
In February this year alone, insiders sold over 16,000 shares of the company’s stock valued at over $4 million accounting for about 1.12% ownership stake while increasing its quarterly dividend payout ratio to $6.28 representing an annualized yield of about 2.68% which is quite impressive.
Some research firms like UBS Group set Cummins’ price target higher from $247 to $260 while others like Deutsche Bank Aktiengesellschaft have recently dropped theirs from $231 to $227 giving an average consensus rating on Bloomberg as “Hold” rating with an estimated closing price range around $254-$255 making Cummins’ future prospects look promising.
Cummins’ business model implementation and sustainability initiatives coupled with strong investor support indicates industry resilience amidst changing trends in engineering services targeting growth potential in emerging markets worldwide between now until 2023/2025 for the industry available within sectors including automotive/engine manufacturing & trading, oil and gas exploration, marine, railways among others.
Cummins Inc has positioned itself to take advantage of this growth opportunity with its technological leadership capabilities and could very well continue to deliver incrementing shareholder value given favorable market trends.