Cummins Inc. $CMI Shares Acquired by Legacy Private Trust Co.

Key Points

• Legacy Private Trust Co. increased its Cummins stake by 1,264.1% in the third quarter, bringing its holdings to 12,222 shares valued at approximately $6.3 million. Institutional investors collectively own 83.46% of the company.
• Cummins shares rose 2.0% to $534.04, but remain below their 50-day and 200-day moving averages. The company reported quarterly revenue of $9.46 billion, up 9.4% year over year, while EPS of $6.73 missed analysts’ $7.21 estimate.
• The company raised its quarterly dividend to $2.20 per share, equivalent to an annualized $8.80 and a 1.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $724.29.

Legacy Private Trust Co. raised its position in Cummins Inc. (NYSE:CMI - Free Report) by 1,264.1% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 12,222 shares of the company's stock after buying an additional 11,326 shares during the period. Legacy Private Trust Co.'s holdings in Cummins were worth $6,314,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in CMI. Wellington Management Group LLP increased its stake in shares of Cummins by 243.5% in the second quarter. Wellington Management Group LLP now owns 495,047 shares of the company's stock valued at $353,072,000 after buying an additional 350,910 shares in the last quarter. Raiffeisen Bank International AG grew its holdings in Cummins by 55.1% during the 2nd quarter. Raiffeisen Bank International AG now owns 46,817 shares of the company's stock worth $32,355,000 after acquiring an additional 16,623 shares during the last quarter. Bank of America Corp DE acquired a new stake in Cummins in the 2nd quarter valued at about $1,408,353,000. Nykredit A S acquired a new stake in Cummins in the 2nd quarter valued at about $47,394,000. Finally, MassMutual Private Wealth & Trust FSB raised its stake in shares of Cummins by 45.2% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 14,571 shares of the company's stock worth $6,981,000 after acquiring an additional 4,538 shares during the last quarter. 83.46% of the stock is owned by institutional investors.

Cummins Trading Up 2.0%

Shares of CMI traded up $10.67 on Tuesday, reaching $534.04. 267,664 shares of the company's stock were exchanged, compared to its average volume of 981,711. The business has a 50 day moving average price of $575.94 and a two-hundred day moving average price of $621.29. Cummins Inc. has a 12 month low of $400.72 and a 12 month high of $737.76. The stock has a market capitalization of $73.52 billion, a P/E ratio of 27.29, a price-to-earnings-growth ratio of 1.39 and a beta of 1.24. 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 announced its quarterly earnings data 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 net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same period in the previous year, the business posted $6.43 earnings per share. Cummins's revenue was up 9.4% compared to the same quarter last year. Research analysts anticipate that Cummins Inc. will post 30.13 earnings per share for the current year.

Cummins Increases Dividend

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

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CMI. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, August 31st. JPMorgan Chase & Co. dropped their price objective on shares of Cummins from $690.00 to $600.00 and set a "neutral" rating for the company in a research report on Wednesday, September 23rd. Citigroup upped their price objective on Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. UBS Group decreased their price objective on Cummins from $835.00 to $741.00 and set a "buy" rating on the stock in a research report on Wednesday, September 30th. Finally, DA Davidson lifted their target price on Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Cummins has an average rating of "Moderate Buy" and a consensus target price of $724.29.

Insider Buying and Selling

In related news, VP Earl Newsome sold 698 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the sale, the vice president owned 4,479 shares in the company, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 0.30% of the company's stock.

Cummins Company Profile

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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