Cummins Inc. $CMI Shares Sold by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC cut its Cummins stake by 3.5% in the fourth quarter, selling 25,379 shares and still holding 700,726 shares worth about $357.9 million.
• Cummins posted stronger-than-expected results in its latest quarter, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly above forecasts. Revenue rose 2.7% year over year, and analysts expect full-year EPS of 29.31.
• The company also paid a quarterly dividend of $2.00 per share, annualizing to $8.00 per share for a 1.1% yield. Meanwhile, several analysts raised price targets, and the stock currently carries a Moderate Buy consensus with an average target of $731.86.

Hsbc Holdings PLC lessened its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 3.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 700,726 shares of the company's stock after selling 25,379 shares during the quarter. Hsbc Holdings PLC owned 0.51% of Cummins worth $357,929,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of 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 acquiring an additional 98,544 shares during the period. State Street Corp boosted its position in shares of Cummins by 0.8% during the 4th quarter. State Street Corp now owns 6,509,852 shares of the company's stock worth $3,322,954,000 after purchasing an additional 49,628 shares during the period. Geode Capital Management LLC increased its holdings in Cummins by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock valued at $1,822,534,000 after purchasing an additional 35,286 shares during the last quarter. Fisher Asset Management LLC increased its holdings in Cummins by 1.3% in the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock valued at $1,741,004,000 after purchasing an additional 43,722 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its position in Cummins by 10,317.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after purchasing an additional 2,434,876 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Price Performance

Cummins stock opened at $716.50 on Friday. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. Cummins Inc. has a 52-week low of $307.90 and a 52-week high of $737.76. The firm has a market cap of $98.87 billion, a PE ratio of 37.18, a price-to-earnings-growth ratio of 1.75 and a beta of 1.23. The company's 50 day moving average is $663.00 and its two-hundred day moving average is $590.68.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 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 during the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter in the previous year, the firm posted $5.96 earnings per share. The company's quarterly revenue was up 2.7% compared to the same quarter last year. On average, research analysts expect that Cummins Inc. will post 29.31 EPS for the current fiscal year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, May 22nd. Cummins's payout ratio is presently 41.52%.

Insider Activity

In other Cummins news, VP Jennifer Mary Bush sold 5,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was 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 in the company, valued at $8,344,773.06. This represents a 29.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Brett Michael Merritt sold 701 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the sale, the insider directly owned 10,404 shares in the company, valued at $7,165,755. This represents a 6.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 over the last three months. Company insiders own 0.30% of the company's stock.

Analyst Ratings Changes

CMI has been the subject of several research analyst reports. Sanford C. Bernstein restated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Barclays boosted their price objective on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Morgan Stanley increased their target price on Cummins from $675.00 to $752.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Wells Fargo & Company raised their target price on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a report on Wednesday. Finally, Citigroup lifted their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Cummins currently has an average rating of "Moderate Buy" and an average price target of $731.86.

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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