Your Set Position Action is using the Hit Normal instead of the Hit Point. That might explain why the cube appears at the base of the raycast instead of where the ray hits something.
Eventually you'll want to replace that with a Create Object, set to create the hit result cube prefab you have. That's assuming you want to use this as a system for spawning a particle system and leaving a bullet hole or something.
But there appears to be other things that might be going wrong. You seem to have a ray that points to what could be world 0,0,0. That shouldn't happen.
And I'm not sure about the "Target" sphere, is it to visualize something? I didn't see anything using it in your FSM.