Cummins Inc. $CMI Shares Acquired by MassMutual Private Wealth & Trust FSB

Key Points

• MassMutual Private Wealth & Trust increased its Cummins stake by 45.2% in the third quarter, bringing its holdings to 14,571 shares valued at approximately $6.98 million. Institutional investors and hedge funds collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings of $6.73 per share fell short of the $7.21 consensus estimate. The company raised its quarterly dividend to $2.20, equivalent to an annualized $8.80 payout and a 1.7% yield.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $731.06, well above the reported share price of $527.63. However, several firms recently lowered their price targets, while a Cummins vice president sold 698 shares.

MassMutual Private Wealth & Trust FSB boosted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 45.2% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 14,571 shares of the company's stock after buying an additional 4,538 shares during the period. MassMutual Private Wealth & Trust FSB's holdings in Cummins were worth $6,981,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the stock. Wellington Management Group LLP lifted its holdings 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 during the period. Raiffeisen Bank International AG grew its holdings in Cummins by 55.1% during the second 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 period. Bank of America Corp DE bought a new stake in Cummins in the second quarter worth about $1,408,353,000. Nykredit A S bought a new stake in Cummins in the second quarter worth about $47,394,000. Finally, Legal & General Group Plc acquired a new stake in Cummins in the 2nd quarter valued at about $666,635,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

Shares of Cummins stock opened at $527.63 on Monday. Cummins Inc. has a 12 month low of $400.72 and a 12 month high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The stock has a market cap of $72.63 billion, a PE ratio of 26.96, a price-to-earnings-growth ratio of 1.39 and a beta of 1.24. The business has a fifty day simple moving average of $578.71 and a 200-day simple moving average of $621.43.

Cummins (NYSE:CMI - Get Free Report) last posted 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). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same period in the previous year, the firm posted $6.43 earnings per share. The firm's quarterly revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts anticipate that Cummins Inc. will post 30.13 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were given a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.7%. This is a positive change 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 currently 44.97%.

Insider Activity at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of the company's stock in a transaction that occurred on 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 owned 4,479 shares in the company, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.30% of the company's stock.

Wall Street Analysts Forecast Growth

CMI has been the topic of several recent research reports. Bank of America lowered their price objective on shares of Cummins from $731.00 to $600.00 in a research note on Thursday, September 24th. Morgan Stanley increased 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. Evercore decreased their price target on shares of Cummins from $845.00 to $782.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 11th. UBS Group cut their price objective on Cummins from $835.00 to $741.00 and set a "buy" rating for the company in a research report on Wednesday. Finally, Citigroup raised their price objective on Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Thirteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $731.06.

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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