Bank of America Corp DE Takes Position in Cummins Inc. $CMI

Key Points

• Bank of America acquired 1.97 million Cummins shares worth approximately $1.41 billion, giving it a 1.43% stake. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above expectations, but earnings per share of $6.73 missed estimates by $0.48.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equal to an annualized $8.80 dividend and a 1.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $750.75.

Bank of America Corp DE acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 1,974,668 shares of the company's stock, valued at approximately $1,408,353,000. Bank of America Corp DE owned about 1.43% of Cummins at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of Cummins during the 2nd quarter worth about $8,204,241,000. Geode Capital Management LLC lifted its holdings in Cummins by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after purchasing an additional 35,286 shares during the last quarter. Fisher Asset Management LLC lifted its holdings in Cummins by 1.3% in the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after purchasing an additional 43,722 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Cummins during the second quarter worth approximately $973,198,000. Finally, Norges Bank bought a new stake in Cummins during the fourth quarter worth approximately $863,441,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Price Performance

Cummins stock opened at $540.97 on Tuesday. The business has a 50 day simple moving average of $617.05 and a 200 day simple moving average of $624.99. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The company has a market capitalization of $74.47 billion, a PE ratio of 27.64, a price-to-earnings-growth ratio of 1.50 and a beta of 1.23. Cummins Inc. has a one year low of $400.72 and a one year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business's revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the company earned $6.43 earnings per share. On average, sell-side analysts forecast that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were given a dividend of $2.20 per share. This is an increase from Cummins's previous quarterly dividend of $2.00. The ex-dividend date was Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.6%. Cummins's dividend payout ratio is 44.97%.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Sanford C. Bernstein reissued a "market perform" rating and issued a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. CICC Research started coverage on shares of Cummins in a report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective for the company. UBS Group lowered their target price on shares of Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Zacks Research downgraded shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Finally, DA Davidson boosted their target price on shares of Cummins from $605.00 to $750.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Cummins has a consensus rating of "Moderate Buy" and an average target price of $750.75.

Insider Transactions at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the transaction, the vice president directly owned 4,479 shares in the company, valued at $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is owned by corporate insiders.

Cummins Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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