Cummins Inc. $CMI Shares Purchased by Vanguard Group Inc.

Key Points

• Vanguard boosted its stake in Cummins by 0.6% in Q4 and now owns 17,746,775 shares—about 12.86% of the company, valued at roughly $9.06 billion per its SEC filing.
• Insider selling has been notable: company insiders sold 31,195 shares worth ~$18.4 million over the last 90 days, including VP Earl Newsome and Director William I. Miller, and insiders now own just 0.30% of the stock.
• Cummins beat expectations with quarterly EPS of $5.81 (vs. $5.17 est.) on $8.54 billion revenue, has a $91.3 billion market cap, declared a $2.00 quarterly dividend (1.2% yield), and holds a consensus "Moderate Buy" with an average price target near $600.

Vanguard Group Inc. boosted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 0.6% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 17,746,775 shares of the company's stock after acquiring an additional 98,544 shares during the period. Vanguard Group Inc. owned about 12.86% of Cummins worth $9,058,841,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Thompson Investment Management Inc. acquired a new stake in shares of Cummins in the 4th quarter valued at $26,000. Flagship Wealth Advisors LLC acquired a new position in shares of Cummins during the third quarter worth $28,000. Osterweis Capital Management Inc. purchased a new position in Cummins in the second quarter valued at $31,000. Holos Integrated Wealth LLC acquired a new stake in Cummins in the fourth quarter valued at $32,000. Finally, Palouse Capital Management Inc. acquired a new stake in Cummins in the fourth quarter valued at $33,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Cummins

In related news, VP Earl Newsome sold 1,300 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $583.67, for a total transaction of $758,771.00. Following the completion of the sale, the vice president owned 3,389 shares in the company, valued at $1,978,057.63. This represents a 27.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director William I. Miller sold 18,107 shares of Cummins stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the completion of the transaction, the director owned 34,243 shares in the company, valued at approximately $20,446,495.30. This represents a 34.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 31,195 shares of company stock worth $18,397,489 over the last 90 days. Company insiders own 0.30% of the company's stock.

Cummins Trading Up 0.0%

NYSE:CMI opened at $660.83 on Monday. The company has a market capitalization of $91.30 billion, a PE ratio of 32.20, a P/E/G ratio of 2.09 and a beta of 1.14. Cummins Inc. has a 52-week low of $284.23 and a 52-week high of $663.38. The stock's 50 day moving average price is $576.44 and its 200 day moving average price is $531.12. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. The company had revenue of $8.54 billion during the quarter, compared to analysts' expectations of $8.09 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm's revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $5.16 earnings per share. On average, research analysts anticipate that Cummins Inc. will post 26.03 EPS for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were given a $2.00 dividend. The ex-dividend date was Friday, February 20th. This represents a $8.00 annualized dividend and a yield of 1.2%. Cummins's dividend payout ratio is 38.99%.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Wolfe Research cut Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective for the company. in a research report on Monday, January 26th. JPMorgan Chase & Co. boosted their target price on Cummins from $485.00 to $580.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 14th. Wall Street Zen downgraded Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Barclays increased their price target on shares of Cummins from $546.00 to $610.00 and gave the company an "overweight" rating in a research note on Friday, January 23rd. Finally, Argus set a $696.00 price objective on shares of Cummins in a report on Tuesday, February 10th. Eleven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus price target of $600.27.

About Cummins

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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