Cummins Inc. $CMI Stake Reduced by Lmcg Investments LLC

Key Points

• Lmcg Investments reduced its Cummins stake by 16.1% in the third quarter, selling 4,308 shares and retaining 22,411 shares valued at approximately $11.6 million. Institutional investors collectively own 83.46% of the company.
• Analysts remain generally positive, with 13 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $703.18, despite several firms recently lowering their targets.
• Cummins shares opened at $543.28, while the company reported quarterly revenue of $9.46 billion but missed earnings expectations. It also declared a quarterly dividend of $2.20 per share, equivalent to an annualized yield of about 1.6%.

Lmcg Investments LLC lessened its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 16.1% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 22,411 shares of the company's stock after selling 4,308 shares during the quarter. Lmcg Investments LLC's holdings in Cummins were worth $11,577,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of CMI. BlackRock Inc. bought a new position in shares of Cummins during the 2nd quarter worth approximately $8,204,241,000. Bank of America Corp DE bought a new stake in Cummins in the 2nd quarter valued at $1,408,353,000. Bank of New York Mellon Corp bought a new stake in Cummins in the 2nd quarter valued at $973,198,000. Robeco Institutional Asset Management B.V. raised its stake in Cummins by 6.4% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock valued at $530,405,000 after acquiring an additional 62,107 shares during the period. Finally, Legal & General Group Plc acquired a new stake in Cummins during the 2nd quarter valued at $666,635,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on CMI. Wells Fargo & Company reduced their price objective on shares of Cummins from $874.00 to $760.00 and set an "overweight" rating for the company in a research report on Thursday, October 8th. Barclays decreased their price objective on shares of Cummins from $760.00 to $675.00 and set an "overweight" rating on the stock in a report on Monday. Wall Street Zen lowered shares of Cummins from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Sanford C. Bernstein restated a "market perform" rating and set a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Finally, Citigroup cut their target price on shares of Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $703.18.

Cummins Trading Up 1.3%

Shares of NYSE:CMI opened at $543.28 on Thursday. The company has a market capitalization of $74.79 billion, a P/E ratio of 27.76, a P/E/G ratio of 1.41 and a beta of 1.24. Cummins Inc. has a 1 year low of $407.57 and a 1 year high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The business's 50 day simple moving average is $549.81 and its 200 day simple moving average is $620.36.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. Cummins's revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the business earned $6.43 EPS. On average, research analysts anticipate that Cummins Inc. will post 29.98 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a $2.20 dividend. The ex-dividend date is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.6%. Cummins's dividend payout ratio (DPR) is presently 44.97%.

Insider Activity at Cummins

In related news, VP Earl Newsome sold 698 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares of the company's stock, valued at $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.30% of the company's stock.

Cummins Company Profile

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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