Allstate Corp Raises Holdings in Cummins Inc. $CMI

Key Points

• Allstate Corp more than doubled its stake in Cummins during the fourth quarter, increasing holdings by 103.6% to 10,278 shares worth about $5.25 million.
• Cummins reported stronger-than-expected quarterly results, posting EPS of $6.15 versus the $5.63 consensus and revenue of $8.40 billion, while revenue rose 2.7% year over year.
• The company also raised its quarterly dividend to $2.00 per share, and analysts remain broadly constructive with an average rating of “Moderate Buy” and an average price target of $700.50.

Allstate Corp grew its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 103.6% in the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 10,278 shares of the company's stock after buying an additional 5,229 shares during the quarter. Allstate Corp's holdings in Cummins were worth $5,246,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Cummins by 8.4% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock valued at $13,107,000 after purchasing an additional 2,417 shares during the period. Fisher Asset Management LLC lifted its stake in shares of Cummins by 2.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after purchasing an additional 91,956 shares during the period. Accredited Wealth Management LLC lifted its stake in shares of Cummins by 3,100.0% in the 3rd quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock valued at $1,352,000 after purchasing an additional 3,100 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Cummins by 50.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock valued at $612,715,000 after purchasing an additional 488,430 shares during the period. Finally, State of New Jersey Common Pension Fund D lifted its stake in shares of Cummins by 5.6% in the 3rd quarter. State of New Jersey Common Pension Fund D now owns 48,795 shares of the company's stock valued at $20,610,000 after purchasing an additional 2,574 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Up 4.5%

Cummins stock opened at $668.64 on Wednesday. The firm has a market cap of $92.27 billion, a price-to-earnings ratio of 34.70, a PEG ratio of 1.58 and a beta of 1.27. The stock has a fifty day simple moving average of $616.71 and a two-hundred day simple moving average of $566.52. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the company earned $5.96 EPS. Equities analysts predict that Cummins Inc. will post 28.93 EPS for the current fiscal year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be issued a $2.00 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insiders Place Their Bets

In other Cummins news, insider Brett Michael Merritt sold 701 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the sale, the insider owned 10,404 shares of the company's stock, valued at approximately $7,165,755. This trade represents a 6.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Nathan R. Stoner sold 607 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $694.06, for a total value of $421,294.42. Following the completion of the transaction, the vice president owned 9,447 shares in the company, valued at approximately $6,556,784.82. This trade represents a 6.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 17,633 shares of company stock worth $11,653,357. 0.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CMI shares. Morgan Stanley raised their target price on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. UBS Group set a $565.00 target price on Cummins and gave the company a "neutral" rating in a research note on Friday, February 6th. Barclays raised their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Citigroup raised their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Finally, JPMorgan Chase & Co. raised their price objective on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and an average price target of $700.50.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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