Cummins Inc. $CMI Shares Acquired by National Pension Service

Key Points

• National Pension Service increased its Cummins stake by 71.2% in the fourth quarter, ending with 416,389 shares worth about $212.5 million.
• Cummins reported strong quarterly results, posting EPS of $6.15 versus the $5.63 estimate and revenue of $8.40 billion, while revenue rose 2.7% year over year.
• The company also declared a $2.00 quarterly dividend and has seen mixed analyst sentiment, with an average rating of Moderate Buy and a consensus price target of $700.50.

National Pension Service boosted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 71.2% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 416,389 shares of the company's stock after purchasing an additional 173,143 shares during the quarter. National Pension Service owned approximately 0.30% of Cummins worth $212,546,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in CMI. Thompson Investment Management Inc. acquired a new position in Cummins during the 4th quarter valued at approximately $26,000. Activest Wealth Management boosted its position in Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after purchasing an additional 43 shares during the period. Wellington Shields Capital Management LLC acquired a new position in Cummins during the 4th quarter valued at approximately $27,000. Ares Financial Consulting LLC acquired a new position in Cummins during the 4th quarter valued at approximately $29,000. Finally, Osterweis Capital Management Inc. acquired a new position in Cummins during the 2nd quarter valued at approximately $31,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling

In other news, insider Brett Michael Merritt sold 701 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the sale, the insider owned 10,404 shares of the company's stock, valued at approximately $7,165,755. The trade was a 6.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Bonnie J. Fetch sold 652 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total value of $456,523.88. Following the completion of the sale, the executive vice president directly owned 11,679 shares in the company, valued at $8,177,519.01. This represents a 5.29% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 17,633 shares of company stock worth $11,653,357. 0.30% of the stock is owned by corporate insiders.

Cummins Stock Down 3.3%

CMI opened at $646.53 on Friday. Cummins Inc. has a one year low of $307.90 and a one year high of $718.08. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The stock's fifty day moving average is $623.70 and its 200-day moving average is $569.87. The company has a market capitalization of $89.21 billion, a PE ratio of 33.55, a P/E/G ratio of 1.63 and a beta of 1.27.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter in the previous year, the business earned $5.96 EPS. The company's quarterly revenue was up 2.7% compared to the same quarter last year. On average, equities analysts predict that Cummins Inc. will post 29.4 EPS for the current fiscal year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's payout ratio is currently 41.52%.

Analyst Ratings Changes

CMI has been the subject of a number of analyst reports. Sanford C. Bernstein restated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Raymond James Financial boosted their price target on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday. Finally, Argus set a $696.00 price target on Cummins in a research report on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, Cummins currently has an average rating of "Moderate Buy" and an average price target of $700.50.

Cummins Profile

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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