Cummins Inc. $CMI Shares Purchased by Korea Investment CORP

Key Points

• Korea Investment CORP increased its Cummins stake by 2.4% in the fourth quarter, bringing its holdings to 158,430 shares valued at about $80.9 million.
• Insider selling picked up recently, with executives Bonnie J. Fetch and Jennifer Mary Bush selling shares totaling more than $3.9 million, while insiders now own just 0.30% of the company.
• Analyst sentiment remains positive, with Cummins carrying a “Moderate Buy” consensus and an average price target of $726.14, while the company also reported earnings and revenue that beat expectations and maintained a quarterly dividend of $2.00 per share.

Korea Investment CORP raised its stake in Cummins Inc. (NYSE:CMI - Free Report) by 2.4% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 158,430 shares of the company's stock after buying an additional 3,680 shares during the period. Korea Investment CORP owned approximately 0.11% of Cummins worth $80,871,000 as of its most recent filing with the SEC.

Several other institutional investors also recently modified their holdings of CMI. Brighton Jones LLC increased its holdings in shares of Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after buying an additional 83 shares in the last quarter. Intech Investment Management LLC increased its holdings in shares of Cummins by 40.8% in the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock valued at $1,240,000 after buying an additional 1,146 shares in the last quarter. Treasurer of the State of North Carolina increased its holdings in shares of Cummins by 2.8% in the second quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock valued at $21,055,000 after buying an additional 1,759 shares in the last quarter. ICW Investment Advisors LLC bought a new position in shares of Cummins in the second quarter valued at $225,000. Finally, Osterweis Capital Management Inc. bought a new position in shares of Cummins in the second quarter valued at $31,000. Institutional investors own 83.46% of the company's stock.

Insider Activity at Cummins

In other Cummins news, EVP Bonnie J. Fetch sold 652 shares of the company's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $700.19, for a total transaction 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Jennifer Mary Bush sold 5,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the sale, the vice president owned 11,986 shares of the company's stock, valued at $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Robert W. Baird set a $700.00 target price on shares of Cummins in a research note on Wednesday, May 6th. Zacks Research raised shares of Cummins from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. Weiss Ratings downgraded shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. Citigroup boosted their target price on shares of Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Finally, Argus boosted their target price on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $726.14.

Cummins Stock Up 0.6%

CMI stock opened at $659.77 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. Cummins Inc. has a 52-week low of $307.90 and a 52-week high of $718.08. The company has a 50-day moving average of $648.43 and a two-hundred day moving average of $583.26. The stock has a market capitalization of $91.04 billion, a price-to-earnings ratio of 34.24, a price-to-earnings-growth ratio of 1.60 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same period in the prior year, the company earned $5.96 earnings per share. The business's quarterly revenue was up 2.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Cummins Inc. will post 29.29 EPS for the current year.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio is 41.52%.

Cummins Company 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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