Cummins Inc. $CMI Stake Lowered by Fjarde AP Fonden Fourth Swedish National Pension Fund

Key Points

• Fjarde AP Fonden trimmed its Cummins stake by 6.8% in the fourth quarter, selling 2,280 shares and leaving it with 31,495 shares worth about $16.1 million.
• Several large institutional investors increased their holdings, including Vanguard, Geode, Fisher, Northwestern Mutual, and Norges Bank, and 83.46% of Cummins shares are owned by institutions and hedge funds.
• Cummins reported strong quarterly results, beating EPS and revenue estimates, while analysts remained constructive with multiple price-target hikes and a consensus rating of Moderate Buy; the company also paid a $2.00 quarterly dividend.

Fjarde AP Fonden Fourth Swedish National Pension Fund cut its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 6.8% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 31,495 shares of the company's stock after selling 2,280 shares during the quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund's holdings in Cummins were worth $16,077,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Vanguard Group Inc. boosted its position in shares of Cummins by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after buying an additional 98,544 shares during the period. Geode Capital Management LLC boosted its position in shares of Cummins by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after buying an additional 35,286 shares during the period. Fisher Asset Management LLC boosted its position in shares of Cummins by 1.3% during the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after buying an additional 43,722 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in shares of Cummins by 10,317.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after buying an additional 2,434,876 shares during the period. Finally, Norges Bank acquired a new position in shares of Cummins during the fourth quarter worth approximately $863,441,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cummins

In other news, VP Nathan R. Stoner sold 607 shares of the 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 completion of the sale, the vice president owned 9,447 shares in the company, valued at approximately $6,556,784.82. This represents a 6.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Donald G. Jackson sold 730 shares of the stock in a transaction on 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 owned 8,316 shares of the company's stock, valued at $5,912,010.72. This trade represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by corporate insiders.

Cummins News Roundup

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research lifted its earnings estimates for Cummins across several upcoming quarters and full years, including FY2027 and FY2028, reinforcing a more bullish profit outlook.
• Positive Sentiment: The analyst firm maintained a Strong-Buy rating, suggesting confidence that Cummins can continue outperforming expectations.
• Positive Sentiment: Recent commentary on Cummins’ raised revenue guidance adds to the case that business trends remain favorable. Why Is Cummins Raising Revenue Guidance Amid NYSE Composite Focus?
• Neutral Sentiment: A separate note questioned whether the stock can rebound after its last earnings report, but it did not introduce new fundamental concerns. Cummins (CMI) Down 4.7% Since Last Earnings Report: Can It Rebound?

Analyst Ratings Changes

CMI has been the subject of several analyst reports. Truist Financial set a $815.00 price objective on Cummins in a research report on Wednesday, May 6th. Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Wells Fargo & Company boosted their price objective on Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Citigroup upped their target price on Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Finally, Robert W. Baird set a $700.00 target price on Cummins in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Cummins currently has an average rating of "Moderate Buy" and a consensus price target of $705.79.

Cummins Stock Performance

CMI opened at $651.38 on Friday. The company has a market capitalization of $89.88 billion, a price-to-earnings ratio of 33.80, a price-to-earnings-growth ratio of 1.59 and a beta of 1.23. 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 1-year low of $307.90 and a 1-year high of $718.08. The business has a 50 day moving average price of $635.72 and a two-hundred day moving average price of $576.59.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $5.96 earnings per share. Research analysts predict that Cummins Inc. will post 29.29 EPS for the current fiscal year.

Cummins Announces Dividend

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

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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