Cummins Inc. $CMI Shares Sold by Cullen Frost Bankers Inc.

Key Points

• Cullen Frost Bankers trimmed its Cummins stake by 3.1% in the fourth quarter, selling 2,113 shares and ending with 65,954 shares valued at about $33.7 million.
• Several analysts remain bullish on CMI, with Morgan Stanley and Barclays both raising price targets; the consensus rating is Moderate Buy with an average target of $677.87.
• Cummins posted better-than-expected earnings for the latest quarter, earning $6.15 per share on revenue of $8.40 billion, and also declared a $2.00 quarterly dividend payable June 4.

Cullen Frost Bankers Inc. decreased its position in Cummins Inc. (NYSE:CMI - Free Report) by 3.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 65,954 shares of the company's stock after selling 2,113 shares during the quarter. Cullen Frost Bankers Inc.'s holdings in Cummins were worth $33,666,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. raised its position in shares of Cummins by 8.4% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock worth $13,107,000 after purchasing an additional 2,417 shares during the period. Bailard Inc. raised its position in Cummins by 7.2% during the third quarter. Bailard Inc. now owns 59,830 shares of the company's stock valued at $25,270,000 after buying an additional 4,035 shares during the period. Fisher Asset Management LLC raised its position in Cummins by 2.8% during the third quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after buying an additional 91,956 shares during the period. Accredited Wealth Management LLC raised its position in Cummins by 3,100.0% during the third quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock valued at $1,352,000 after buying an additional 3,100 shares during the period. Finally, Bank of New York Mellon Corp raised its position in Cummins by 50.8% during 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 buying an additional 488,430 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Morgan Stanley upped their price target on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Robert W. Baird set a $700.00 price target on Cummins in a research report on Wednesday, May 6th. Argus set a $696.00 price target on Cummins in a research report on Tuesday, February 10th. Weiss Ratings lowered Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Finally, Barclays upped their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $677.87.

Insider Activity at Cummins

In other news, EVP Bonnie J. Fetch sold 652 shares of the company's stock in a transaction dated Monday, May 11th. The stock was 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 owned 11,679 shares in the company, valued at approximately $8,177,519.01. This represents a 5.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Nathan R. Stoner sold 607 shares of the company's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $694.06, for a total value of $421,294.42. Following the sale, the vice president owned 9,447 shares of the company's stock, valued at approximately $6,556,784.82. This trade represents a 6.04% 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 in the last 90 days. Insiders own 0.30% of the company's stock.

Cummins Stock Performance

Shares of CMI stock opened at $658.67 on Wednesday. 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 fifty-two week low of $307.90 and a fifty-two week high of $718.08. The stock's 50-day moving average is $606.31 and its two-hundred day moving average is $558.95. The firm has a market cap of $90.89 billion, a P/E ratio of 34.18, a PEG ratio of 1.71 and a beta of 1.27.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate 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 analyst estimates of $8.37 billion. During the same period in the prior year, the firm posted $5.96 EPS. The business's revenue was up 2.7% compared to the same quarter last year. Analysts predict that Cummins Inc. will post 28.39 earnings per share for the current fiscal year.

Cummins Dividend Announcement

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

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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