Cummins Inc. $CMI Shares Bought by KLP Kapitalforvaltning AS

Key Points

• KLP Kapitalforvaltning AS increased its holdings in Cummins Inc. by 1.5%, owning about 0.08% of the company valued at approximately $37.99 million as of their latest SEC filing.
• Wall Street analysts have positive forecasts for Cummins, with several brokerages upgrading the stock, leading to a consensus target price of $393.57 and a rating of "Moderate Buy".
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from the previous $1.82, indicating growing investor returns.

KLP Kapitalforvaltning AS grew its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 1.5% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 116,001 shares of the company's stock after purchasing an additional 1,700 shares during the quarter. KLP Kapitalforvaltning AS owned about 0.08% of Cummins worth $37,990,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the stock. Olde Wealth Management LLC purchased a new position in Cummins during the first quarter worth approximately $30,000. Accredited Wealth Management LLC acquired a new stake in shares of Cummins in the 1st quarter worth $31,000. Opal Wealth Advisors LLC acquired a new stake in shares of Cummins in the 1st quarter worth $37,000. Richardson Financial Services Inc. purchased a new position in shares of Cummins during the 1st quarter worth $39,000. Finally, Costello Asset Management INC acquired a new position in shares of Cummins during the 1st quarter valued at about $40,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CMI. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Citigroup raised their price target on shares of Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a report on Tuesday, September 23rd. Robert W. Baird upped their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research note on Wednesday, September 3rd. Finally, Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Ten analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $393.57.

Insider Activity at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the sale, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the sale, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,119 shares of company stock worth $14,159,885 over the last quarter. 0.41% of the stock is currently owned by insiders.

Cummins Stock Up 1.6%

Shares of NYSE CMI opened at $439.66 on Tuesday. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The business's 50 day moving average is $402.11 and its two-hundred day moving average is $346.92. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $440.51. The firm has a market cap of $60.58 billion, a price-to-earnings ratio of 20.67, a PEG ratio of 2.09 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period last year, the business posted $5.26 EPS. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. Research analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is presently 37.61%.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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