Cummins Inc. $CMI Shares Sold by Securian Asset Management Inc.

Key Points

• Securian Asset Management cut its Cummins stake by 43.4% in the fourth quarter, leaving it with 3,807 shares worth about $1.94 million.
• Cummins posted stronger-than-expected Q1 results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above forecasts; revenue also rose 2.7% year over year.
• Analysts remain broadly positive on the stock, with a consensus Moderate Buy rating and an average price target of $677.87, while several firms raised targets after earnings.

Securian Asset Management Inc. lessened its stake in Cummins Inc. (NYSE:CMI - Free Report) by 43.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,807 shares of the company's stock after selling 2,924 shares during the quarter. Securian Asset Management Inc.'s holdings in Cummins were worth $1,943,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of Cummins by 8.4% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock valued at $13,107,000 after purchasing an additional 2,417 shares during the last quarter. New York State Teachers Retirement System boosted its holdings in shares of Cummins by 2.1% in the 3rd quarter. New York State Teachers Retirement System now owns 111,911 shares of the company's stock valued at $47,268,000 after purchasing an additional 2,305 shares during the last quarter. Bailard Inc. boosted its holdings in shares of Cummins by 7.2% in the 3rd quarter. Bailard Inc. now owns 59,830 shares of the company's stock valued at $25,270,000 after purchasing an additional 4,035 shares during the last quarter. Fisher Asset Management LLC boosted its holdings in shares of Cummins by 2.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after purchasing an additional 91,956 shares during the last quarter. Finally, Accredited Wealth Management LLC boosted its holdings in shares of Cummins by 3,100.0% in the 3rd quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock valued at $1,352,000 after purchasing an additional 3,100 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity

In related news, VP Amy Rochelle Davis sold 4,054 shares of Cummins stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the sale, the vice president owned 15,807 shares of the company's stock, valued at $8,873,101.38. The trade was a 20.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Nathan R. Stoner sold 607 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $694.06, for a total transaction of $421,294.42. Following the sale, the vice president directly owned 9,447 shares in the company, valued at $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 34,073 shares of company stock worth $20,794,687 over the last three months. 0.30% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Wall Street Zen lowered shares of Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Wells Fargo & Company lifted their target price on shares of Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Morgan Stanley lifted their target price on shares of Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned 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 $677.87.

Cummins Stock Performance

Cummins stock opened at $701.70 on Tuesday. Cummins Inc. has a 12-month low of $307.90 and a 12-month high of $718.08. The company has a market capitalization of $96.83 billion, a price-to-earnings ratio of 36.41, a price-to-earnings-growth ratio of 1.71 and a beta of 1.27. 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 firm's fifty day moving average price is $590.90 and its 200 day moving average price is $547.40.

Cummins (NYSE:CMI - Get Free Report) last released 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 firm had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter in the previous year, the firm posted $5.96 EPS. The firm's quarterly revenue was up 2.7% on a year-over-year basis. On average, research analysts forecast that Cummins Inc. will post 28.39 EPS for the current fiscal year.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins reported strong fiscal Q1 results last week, with EPS of $6.15 beating estimates by $0.52 and revenue of $8.40 billion slightly ahead of expectations, reinforcing confidence in the company’s earnings power. Cummins insider trades and earnings update
• Positive Sentiment: Several analysts raised their price targets after the earnings report, including Barclays and Citigroup, and Zacks upgraded the stock to a strong-buy rating, which may be helping investor sentiment. Wells Fargo remains a buy on Cummins
• Neutral Sentiment: Institutional ownership remains high, and recent buying by some funds suggests continued long-term interest in the stock, though this is less likely to drive the shares in the short term.
• Negative Sentiment: Multiple Cummins executives sold shares this week, including VP Nathan Stoner, EVP Bonnie Fetch, and VP Marvin Boakye. While these sales were relatively small versus their holdings, insider selling can sometimes weigh on market sentiment. Nathan Stoner sold shares Bonnie Fetch sold shares

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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