Amundi Raises Stake in Cummins Inc. $CMI

Key Points

• Amundi increased its Cummins stake by 9.8% in the first quarter, adding 66,545 shares to own 746,679 shares valued at approximately $401.7 million. Institutional investors collectively hold 83.46% of the company.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and four Holds producing a consensus “Moderate Buy” rating and an average price target of $740.07. Recent targets range as high as $901.
• Cummins shares opened at $605.63 after declining 5.6%, despite beating quarterly earnings and revenue estimates. The company also raised its quarterly dividend to $2.20 per share, equivalent to an annualized $8.80 payout and a 1.5% yield.

Amundi raised its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 9.8% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 746,679 shares of the company's stock after purchasing an additional 66,545 shares during the period. Amundi owned 0.54% of Cummins worth $401,727,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Juno Financial Group LLC bought a new position in Cummins in the 4th quarter valued at approximately $883,000. Truist Financial Corp increased its holdings in shares of Cummins by 4.8% in the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company's stock worth $32,671,000 after purchasing an additional 2,951 shares in the last quarter. Smith Salley Wealth Management increased its holdings in shares of Cummins by 1,381.8% in the 4th quarter. Smith Salley Wealth Management now owns 21,768 shares of the company's stock worth $11,111,000 after purchasing an additional 20,299 shares in the last quarter. Westfield Capital Management Co. LP purchased a new position in shares of Cummins in the fourth quarter worth $7,797,000. Finally, Kepler Cheuvreux Suisse SA bought a new position in shares of Cummins during the fourth quarter valued at $7,869,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Sanford C. Bernstein reissued a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Barclays raised their price target on shares of Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Wells Fargo & Company lifted their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. JPMorgan Chase & Co. increased their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Finally, Truist Financial raised their target price on shares of Cummins from $815.00 to $901.00 and gave the stock a "buy" rating in a report on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $740.07.

Insider Buying and Selling

In related news, VP Nathan R. Stoner sold 607 shares of Cummins stock in a transaction on Monday, May 11th. The shares were sold at an average price of $694.06, for a total transaction of $421,294.42. Following the transaction, the vice president owned 9,447 shares in the company, valued at approximately $6,556,784.82. The trade was a 6.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brett Michael Merritt sold 701 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the transaction, the insider owned 10,404 shares in the company, valued at $7,165,755. The trade was a 6.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 in the last ninety days. Corporate insiders own 0.30% of the company's stock.

Cummins Trading Down 5.6%

NYSE:CMI opened at $605.63 on Thursday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The firm has a market capitalization of $83.57 billion, a price-to-earnings ratio of 31.43, a price-to-earnings-growth ratio of 1.56 and a beta of 1.22. Cummins Inc. has a one year low of $354.68 and a one year high of $737.76. The business has a fifty day moving average price of $670.30 and a 200-day moving average price of $621.86.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating the consensus estimate of $5.63 by $0.52. The company had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.Cummins's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the business earned $5.96 earnings per share. Sell-side analysts forecast that Cummins Inc. will post 29.39 EPS for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a dividend of $2.20 per share. This is a boost from Cummins's previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.5%. Cummins's dividend payout ratio is presently 41.52%.

Cummins 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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