Cummins Inc. $CMI Holdings Boosted by Formuepleje A S

Key Points

• Formuepleje A S increased its Cummins stake by 36.4% in the third quarter to 63,942 shares valued at approximately $33.0 million. Institutional investors collectively own 83.46% of Cummins.
• Analysts maintain a generally positive outlook, with 13 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $708.18, despite several recent target cuts.
• Cummins shares recently traded at $524.76 after the company missed quarterly EPS estimates, although revenue rose 9.4% year over year. The company declared a quarterly dividend of $2.20 per share, equivalent to a 1.7% yield.

Formuepleje A S lifted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 36.4% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 63,942 shares of the company's stock after acquiring an additional 17,066 shares during the quarter. Cummins makes up approximately 2.8% of Formuepleje A S's investment portfolio, making the stock its 11th largest position. Formuepleje A S's holdings in Cummins were worth $33,031,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also bought and sold shares of CMI. Cedar Mountain Advisors LLC grew its stake in shares of Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares in the last quarter. Persistent Asset Partners Ltd bought a new stake in Cummins during the second quarter worth $26,000. Key Financial Inc raised its position in Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after acquiring an additional 20 shares in the last quarter. Elevation Wealth Partners LLC lifted its stake in Cummins by 91.7% in the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after acquiring an additional 22 shares during the last quarter. Finally, Steph & Co. lifted its stake in Cummins by 112.9% in the first quarter. Steph & Co. now owns 66 shares of the company's stock valued at $36,000 after acquiring an additional 35 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on CMI shares. Truist Financial lowered their price objective on shares of Cummins from $894.00 to $779.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Morgan Stanley raised their target price on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Wells Fargo & Company cut their target price on shares of Cummins from $874.00 to $760.00 and set an "overweight" rating for the company in a research note on Thursday, October 8th. Sanford C. Bernstein reiterated a "market perform" rating and set a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Finally, Evercore lowered their price target on Cummins from $845.00 to $782.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 11th. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus target price of $708.18.

Insider Transactions at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of the company's stock in a transaction on Monday, August 24th. The stock was 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 of the company's stock, valued at $2,562,973.38. This represents a 13.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 0.30% of the stock is owned by company insiders.

Cummins Stock Performance

Shares of NYSE:CMI traded down $1.20 on Thursday, hitting $524.76. The company had a trading volume of 431,950 shares, compared to its average volume of 985,426. The stock has a market cap of $72.24 billion, a price-to-earnings ratio of 26.81, a P/E/G ratio of 1.39 and a beta of 1.24. The stock has a 50 day moving average price of $560.36 and a 200 day moving average price of $620.42. Cummins Inc. has a 1-year low of $405.82 and a 1-year high of $737.76. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the prior year, the business posted $6.43 EPS. The business's quarterly revenue was up 9.4% compared to the same quarter last year. Analysts expect that Cummins Inc. will post 30.10 EPS for the current year.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be issued a dividend of $2.20 per share. This represents a $8.80 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, November 20th. Cummins's dividend payout ratio (DPR) is presently 44.97%.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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