Cummins Inc. $CMI Shares Purchased by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual Wealth Management Co. dramatically increased its Cummins stake by more than 10,000% in the fourth quarter, ending with 2.46 million shares worth about $1.25 billion. Cummins became its 24th largest holding.
• Cummins posted stronger-than-expected quarterly results, reporting EPS of $6.15 versus the $5.63 consensus and revenue of $8.40 billion, slightly above estimates. Revenue rose 2.7% year over year.
• The company also announced a quarterly dividend of $2.00 per share, payable June 4, translating to an annualized dividend of $8.00 per share and a 1.1% yield. The payout ratio was 41.52%.

Northwestern Mutual Wealth Management Co. lifted its position in Cummins Inc. (NYSE:CMI - Free Report) by 10,317.7% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,458,475 shares of the company's stock after purchasing an additional 2,434,876 shares during the quarter. Cummins comprises about 0.6% of Northwestern Mutual Wealth Management Co.'s holdings, making the stock its 24th biggest holding. Northwestern Mutual Wealth Management Co. owned approximately 1.78% of Cummins worth $1,254,929,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CMI. Vanguard Group Inc. boosted its holdings in Cummins by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock valued at $9,058,841,000 after purchasing an additional 98,544 shares during the last quarter. Fisher Asset Management LLC increased its holdings in shares of Cummins by 2.8% during the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock worth $1,422,121,000 after buying an additional 91,956 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Cummins by 0.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,537,347 shares of the company's stock valued at $649,280,000 after buying an additional 7,372 shares during the period. Raymond James Financial Inc. lifted its holdings in Cummins by 4.5% in the third quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company's stock valued at $640,090,000 after acquiring an additional 64,822 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in Cummins by 50.8% in the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock valued at $612,715,000 after acquiring an additional 488,430 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Stock Performance

NYSE CMI opened at $698.36 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. The company has a market cap of $96.37 billion, a P/E ratio of 36.24, a P/E/G ratio of 1.81 and a beta of 1.27. The stock has a 50-day moving average of $601.51 and a two-hundred day moving average of $554.63. Cummins Inc. has a 1-year low of $307.90 and a 1-year high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter in the prior year, the company earned $5.96 earnings per share. The business's quarterly revenue was up 2.7% on a year-over-year basis. As a group, analysts anticipate that Cummins Inc. will post 28.39 EPS for the current year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be issued a dividend of $2.00 per share. The ex-dividend date is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.1%. Cummins's dividend payout ratio is 41.52%.

Analysts Set New Price Targets

A number of equities research analysts have commented on CMI shares. Sanford C. Bernstein set a $600.00 target price on Cummins and gave the company a "market perform" rating in a research report on Friday, February 6th. Argus set a $696.00 price target on shares of Cummins in a research report on Tuesday, February 10th. Wolfe Research lowered shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective on the stock. in a report on Monday, January 26th. Wall Street Zen cut shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Finally, UBS Group set a $565.00 target price on Cummins and gave the company a "neutral" rating in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $677.87.

Insider Buying and Selling

In other Cummins news, VP Amy Rochelle Davis sold 4,054 shares of the business's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total value of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares in the company, valued at $8,873,101.38. The trade was a 20.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Donald G. Jackson sold 1,600 shares of the company's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total value of $960,208.00. Following the sale, the vice president directly owned 7,214 shares in the company, valued at $4,329,337.82. This represents a 18.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,397 shares of company stock worth $14,465,833 over the last three months. 0.30% of the stock is owned by insiders.

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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