Allianz Asset Management GmbH Purchases 158,304 Shares of Cummins Inc. $CMI

Key Points

• Allianz Asset Management GmbH has increased its stake in Cummins Inc. by 23.3%, now owning 837,694 shares valued at approximately $274.35 million.
• Brokerages have reacted positively to Cummins, with Zacks Research upgrading it to a "strong-buy" rating and Citigroup raising its price target from $425 to $485.
• The company announced a quarterly dividend of $2.00 per share, reflecting an annual yield of 1.9% and a payout ratio of 37.61%.

Allianz Asset Management GmbH increased its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 23.3% in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 837,694 shares of the company's stock after buying an additional 158,304 shares during the period. Allianz Asset Management GmbH owned 0.61% of Cummins worth $274,345,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. Rosenberg Matthew Hamilton boosted its holdings in shares of Cummins by 101.7% during the 2nd quarter. Rosenberg Matthew Hamilton now owns 488 shares of the company's stock worth $160,000 after buying an additional 246 shares during the period. Mutual Advisors LLC boosted its holdings in shares of Cummins by 2.4% during the 2nd quarter. Mutual Advisors LLC now owns 2,669 shares of the company's stock worth $874,000 after buying an additional 63 shares during the period. Harbour Investments Inc. boosted its holdings in shares of Cummins by 2.5% during the 2nd quarter. Harbour Investments Inc. now owns 1,871 shares of the company's stock worth $613,000 after buying an additional 45 shares during the period. JGP Wealth Management LLC boosted its holdings in shares of Cummins by 1.8% during the 2nd quarter. JGP Wealth Management LLC now owns 3,899 shares of the company's stock worth $1,277,000 after buying an additional 68 shares during the period. Finally, Sagespring Wealth Partners LLC boosted its holdings in shares of Cummins by 16.1% during the 2nd quarter. Sagespring Wealth Partners LLC now owns 4,274 shares of the company's stock worth $1,400,000 after buying an additional 593 shares during the period. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently commented on CMI. Zacks Research raised shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 8th. Citigroup boosted their price objective on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a report on Tuesday, September 23rd. Weiss Ratings restated a "buy (b-)" rating on shares of Cummins in a research report on Tuesday. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Finally, Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $407.43.

Cummins Stock Performance

NYSE CMI opened at $423.12 on Thursday. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $440.51. The company has a 50-day simple moving average of $409.86 and a 200 day simple moving average of $351.33. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The company has a market capitalization of $58.30 billion, a PE ratio of 19.89, a price-to-earnings-growth ratio of 2.01 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue was down 1.7% on a year-over-year basis. During the same period last year, the company posted $5.26 EPS. On average, research analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, November 21st will be paid a dividend of $2.00 per share. The ex-dividend date of this dividend is Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. Cummins's dividend payout ratio is presently 37.61%.

Insider Activity at Cummins

In other Cummins news, VP Robert Enright sold 1,860 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the transaction, the vice president directly owned 955 shares in the company, valued at $384,158.30. This represents a 66.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 43,119 shares of company stock valued at $17,674,285 over the last quarter. 0.41% of the stock is currently owned by insiders.

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.

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