Conning Inc. Sells 18,235 Shares of Cummins Inc. $CMI

Key Points

• Conning Inc. cut its Cummins stake by 21.6% in the fourth quarter, selling 18,235 shares and leaving it with 66,008 shares worth about $33.7 million.
• Cummins reported strong quarterly results, with EPS of $6.15 and revenue of $8.40 billion, both ahead of expectations, while revenue rose 2.7% year over year.
• The company announced a $2.00 quarterly dividend, equal to an $8.00 annualized payout and a 1.1% yield, while analysts remain broadly positive with a consensus “Moderate Buy” rating.

Conning Inc. decreased its stake in Cummins Inc. (NYSE:CMI - Free Report) by 21.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 66,008 shares of the company's stock after selling 18,235 shares during the period. Cummins makes up 1.1% of Conning Inc.'s portfolio, making the stock its 25th largest holding. Conning Inc.'s holdings in Cummins were worth $33,694,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of CMI. New York Life Investment Management LLC raised its position in shares of Cummins by 1.1% during the fourth quarter. New York Life Investment Management LLC now owns 18,939 shares of the company's stock valued at $9,667,000 after buying an additional 213 shares during the last quarter. Cornerstone Wealth Management LLC grew its position in Cummins by 1.8% during the fourth quarter. Cornerstone Wealth Management LLC now owns 4,125 shares of the company's stock worth $2,106,000 after buying an additional 73 shares in the last quarter. E Fund Management Hong Kong Co. Ltd. increased its stake in Cummins by 37,900.0% during the fourth quarter. E Fund Management Hong Kong Co. Ltd. now owns 380 shares of the company's stock valued at $194,000 after acquiring an additional 379 shares during the period. Rayburn West Financial Services LLC acquired a new position in shares of Cummins in the fourth quarter valued at $204,000. Finally, Cardinal Point Capital Management ULC lifted its position in Cummins by 141.2% in the fourth quarter. Cardinal Point Capital Management ULC now owns 2,412 shares of the company's stock worth $1,231,000 after purchasing an additional 1,412 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cummins

In other news, EVP Bonnie J. Fetch sold 652 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the sale, the executive vice president owned 11,679 shares in the company, valued at approximately $8,177,519.01. This represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Brett Michael Merritt sold 701 shares of Cummins 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 directly owned 10,404 shares of the company's stock, valued at $7,165,755. This represents a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 22,397 shares of company stock valued at $14,465,833. 0.30% of the stock is currently owned by company insiders.

Cummins Price Performance

Shares of Cummins stock opened at $715.33 on Friday. The stock has a market capitalization of $98.71 billion, a price-to-earnings ratio of 37.12, a P/E/G ratio of 1.79 and a beta of 1.27. The firm's 50-day moving average price is $599.02 and its two-hundred day moving average price is $553.62. 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 Inc. has a 1-year low of $307.90 and a 1-year high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping the consensus estimate of $5.63 by $0.52. The business 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 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 EPS. On average, equities analysts predict that Cummins Inc. will post 28.39 earnings per share for the current fiscal year.

Cummins Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be paid 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 yield of 1.1%. Cummins's payout ratio is currently 41.52%.

Cummins News Roundup

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest earnings beat expectations, with EPS of $6.15 on revenue of $8.40 billion, reinforcing confidence in the company’s operating momentum and supporting the stock. Cummins stock report
• Positive Sentiment: Analysts have turned more constructive, with Citigroup, Barclays, and Evercore raising targets, while Zacks upgraded Cummins to “strong-buy,” which can lift investor sentiment. Cummins price target raised article
• Positive Sentiment: The company declared a quarterly dividend of $2.00 per share, underscoring shareholder returns and adding to the stock’s income appeal.
• Positive Sentiment: Shareholders approved the board, pay package, and incentive plan at the annual meeting, signaling governance continuity and support for management. Cummins Shareholders Back Board, Pay and Incentive Plan
• Neutral Sentiment: One Cummins vice president sold shares, and several other insider sales were reported this week; while not necessarily a red flag, the activity may slightly temper enthusiasm.
• Neutral Sentiment: Recent articles discussing Cummins’ momentum and relative performance versus industrial peers are more commentary than fresh catalysts. Relative performance article

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Barclays lifted their price target on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Morgan Stanley lifted their target price on shares of Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. UBS Group set a $565.00 target price on shares of Cummins and gave the company a "neutral" rating in a research note on Friday, February 6th. Sanford C. Bernstein set a $600.00 target price on shares of Cummins and gave the company a "market perform" rating in a research note on Friday, February 6th. Finally, Wolfe Research cut shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price target for the company. in a research note on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $677.87.

About Cummins

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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