Cummins Inc. $CMI Shares Sold by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management cut its Cummins stake by 28.1% in the fourth quarter, selling 7,100 shares and leaving it with 18,148 shares valued at about $9.34 million.
• Insider selling was also notable: Vice Presidents Donald G. Jackson and Jennifer Mary Bush sold shares, and insiders sold 13,579 shares worth about $9.38 million over the last 90 days.
• Cummins beat first-quarter expectations with EPS of $6.15 versus $5.63 expected and revenue of $8.40 billion, while analysts remain generally bullish with an average price target of $726.14.

Rakuten Investment Management Inc. trimmed its position in Cummins Inc. (NYSE:CMI - Free Report) by 28.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 18,148 shares of the company's stock after selling 7,100 shares during the period. Rakuten Investment Management Inc.'s holdings in Cummins were worth $9,340,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of CMI. Brighton Jones LLC grew its position in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after buying an additional 83 shares during the last quarter. Intech Investment Management LLC grew its position in Cummins by 40.8% in the 1st 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 during the last quarter. Treasurer of the State of North Carolina grew its position in Cummins by 2.8% in the 2nd 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 during the last quarter. ICW Investment Advisors LLC purchased a new position in Cummins in the 2nd quarter valued at $225,000. Finally, Osterweis Capital Management Inc. purchased a new position in Cummins in the 2nd quarter valued at $31,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, VP Donald G. Jackson sold 730 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the sale, the vice president directly owned 8,316 shares in the company, valued at $5,912,010.72. The trade was a 8.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the business'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 completion of 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by company insiders.

Cummins Price Performance

Shares of NYSE CMI opened at $701.15 on Wednesday. The firm has a market capitalization of $96.75 billion, a P/E ratio of 36.39, a PEG ratio of 1.66 and a beta of 1.24. Cummins Inc. has a one year low of $307.90 and a one year high of $718.08. The company's fifty day moving average is $654.05 and its two-hundred day moving average is $586.69. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71.

Cummins (NYSE:CMI - Get Free Report) last issued its 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. The company had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business's revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the firm earned $5.96 EPS. Analysts forecast that Cummins Inc. will post 29.29 EPS for the current fiscal year.

Cummins Dividend Announcement

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

Analysts Set New Price Targets

CMI has been the topic of a number of analyst reports. Evercore reiterated an "outperform" rating and issued a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Raymond James Financial lifted their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research report on Tuesday, May 26th. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Finally, Morgan Stanley boosted their target price on shares of Cummins from $675.00 to $752.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $726.14.

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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