Skba Capital Management LLC acquired a new stake in shares of Cummins Inc. (NYSE:CMI) during the third quarter, Holdings Channel reports. The fund acquired 108,850 shares of the company’s stock, valued at approximately $15,900,000. Cummins accounts for approximately 2.1% of Skba Capital Management LLC’s portfolio, making the stock its 20th largest holding.

A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. Xact Kapitalforvaltning AB grew its position in Cummins by 6.6% during the 2nd quarter. Xact Kapitalforvaltning AB now owns 17,272 shares of the company’s stock worth $2,297,000 after purchasing an additional 1,075 shares during the period. Cornerstone Advisors Inc. grew its position in Cummins by 28.0% during the 2nd quarter. Cornerstone Advisors Inc. now owns 2,556 shares of the company’s stock worth $340,000 after purchasing an additional 559 shares during the period. GWM Advisors LLC acquired a new stake in Cummins during the 2nd quarter worth about $563,000. James Investment Research Inc. acquired a new stake in Cummins during the 2nd quarter worth about $1,798,000. Finally, Cornerstone Wealth Management LLC acquired a new stake in shares of Cummins during the 2nd quarter valued at about $1,179,000. 82.51% of the stock is currently owned by hedge funds and other institutional investors.

CMI stock opened at $144.49 on Wednesday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.54. Cummins Inc. has a 12-month low of $124.72 and a 12-month high of $194.18. The stock has a market capitalization of $23.40 billion, a P/E ratio of 13.61, a PEG ratio of 0.79 and a beta of 1.16.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, October 30th. The company reported $4.05 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $3.76 by $0.29. Cummins had a return on equity of 29.17% and a net margin of 5.57%. The company had revenue of $5.94 billion for the quarter, compared to analysts’ expectations of $5.96 billion. During the same period in the previous year, the firm posted $2.71 EPS. Cummins’s revenue was up 12.5% compared to the same quarter last year. As a group, analysts expect that Cummins Inc. will post 15.34 earnings per share for the current year.

Cummins announced that its board has initiated a stock buyback program on Tuesday, October 9th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 8.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be issued a $1.14 dividend. This represents a $4.56 annualized dividend and a yield of 3.16%. The ex-dividend date of this dividend is Wednesday, November 14th. Cummins’s payout ratio is 42.94%.

In related news, CFO Pat Ward sold 4,503 shares of Cummins stock in a transaction dated Wednesday, October 3rd. The stock was sold at an average price of $148.93, for a total value of $670,631.79. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Marya M. Rose sold 14,579 shares of Cummins stock in a transaction dated Monday, October 8th. The stock was sold at an average price of $151.07, for a total value of $2,202,449.53. Following the completion of the sale, the chief accounting officer now owns 24,424 shares in the company, valued at $3,689,733.68. The disclosure for this sale can be found here. Over the last quarter, insiders sold 27,090 shares of company stock worth $4,062,754. 0.67% of the stock is currently owned by insiders.

A number of equities research analysts have recently commented on CMI shares. Stifel Nicolaus restated a “buy” rating and set a $172.00 target price on shares of Cummins in a research report on Monday, October 1st. Zacks Investment Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $166.00 target price on the stock in a research report on Wednesday, September 26th. Loop Capital started coverage on Cummins in a research report on Wednesday, October 17th. They set a “buy” rating and a $170.00 target price on the stock. Finally, Oppenheimer restated a “buy” rating and set a $164.00 target price on shares of Cummins in a research report on Tuesday, October 30th. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and eight have issued a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $163.70.

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Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of 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.

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Institutional Ownership by Quarter for Cummins (NYSE:CMI)

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