Cummins Inc. $CMI Shares Acquired by Asset Management One Co. Ltd.

Key Points

• Asset Management One increased its Cummins stake by 4.3% in the third quarter to 60,637 shares valued at approximately $31.3 million. Institutional investors collectively own 83.46% of the company.
• Analyst sentiment remains favorable, with 13 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $694.24, despite several recent target-price cuts.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of estimates. The company declared a quarterly dividend of $2.20, equivalent to an annualized yield of about 1.7%.

Asset Management One Co. Ltd. increased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 4.3% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 60,637 shares of the company's stock after purchasing an additional 2,476 shares during the quarter. Asset Management One Co. Ltd.'s holdings in Cummins were worth $31,323,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in the business. Wellington Management Group LLP raised its position in Cummins by 243.5% during the second quarter. Wellington Management Group LLP now owns 495,047 shares of the company's stock worth $353,072,000 after acquiring an additional 350,910 shares in the last quarter. Fulcrum Wealth Advisors LLC lifted its stake in Cummins by 611.8% in the third quarter. Fulcrum Wealth Advisors LLC now owns 16,264 shares of the company's stock valued at $8,401,000 after acquiring an additional 13,979 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its position in shares of Cummins by 45.2% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 14,571 shares of the company's stock valued at $6,981,000 after acquiring an additional 4,538 shares during the period. CWS Financial Advisors LLC grew its position in shares of Cummins by 973.2% in the 3rd quarter. CWS Financial Advisors LLC now owns 4,733 shares of the company's stock valued at $2,445,000 after acquiring an additional 4,292 shares during the period. Finally, Bank of America Corp DE acquired a new position in shares of Cummins during the 2nd quarter worth about $1,408,353,000. Institutional investors own 83.46% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Wells Fargo & Company lowered their price objective on shares of Cummins from $760.00 to $608.00 and set an "overweight" rating on the stock in a research note on Monday. 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. Truist Financial reduced their price target on Cummins from $894.00 to $779.00 and set a "buy" rating for the company in a report on Monday, October 5th. DA Davidson upped their price objective on Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Finally, Bank of America cut their price objective on Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Thirteen investment 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 an average rating of "Moderate Buy" and an average price target of $694.24.

Insider Buying and Selling

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

Cummins Stock Performance

Shares of CMI stock opened at $529.59 on Thursday. The company has a market capitalization of $72.90 billion, a price-to-earnings ratio of 27.06, a PEG ratio of 1.37 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The company has a 50-day simple moving average of $540.40 and a 200 day simple moving average of $602.50. Cummins Inc. has a 52 week low of $418.77 and a 52 week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate 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 firm's revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the company earned $6.43 earnings per share. On average, sell-side analysts predict that Cummins Inc. will post 29.98 earnings per share for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be issued a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Friday, November 20th. Cummins's dividend payout ratio is currently 44.97%.

Cummins Profile

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

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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