Cummins Inc. $CMI Stock: Aberdeen Group plc Raises Position

Key Points

• Aberdeen Group increased its Cummins stake by 29.6% in the third quarter, adding 52,884 shares to bring its total holding to 231,286 shares, valued at about $119.5 million.
• Cummins reported quarterly EPS of $8.25, slightly above estimates, while revenue of $9.44 billion missed forecasts; revenue nevertheless rose 13.5% year over year.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $659.44. Shares opened at $451.68, near their 1-year low of $443.62.

Aberdeen Group plc grew its stake in Cummins Inc. (NYSE:CMI - Free Report) by 29.6% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 231,286 shares of the company's stock after buying an additional 52,884 shares during the period. Aberdeen Group plc owned 0.17% of Cummins worth $119,475,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of CMI. Persistent Asset Partners Ltd purchased a new stake in Cummins in the second quarter valued at $26,000. Elevation Wealth Partners LLC boosted its stake in Cummins by 91.7% in the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after acquiring an additional 22 shares in the last quarter. Cornerstone Financial Management LLC boosted its stake in Cummins by 65.8% in the second quarter. Cornerstone Financial Management LLC now owns 63 shares of the company's stock valued at $45,000 after acquiring an additional 25 shares in the last quarter. Balance Wealth Partners LLC purchased a new position in shares of Cummins during the third quarter worth about $32,000. Finally, Dunhill Financial LLC purchased a new position in shares of Cummins during the second quarter worth about $46,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Transactions at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the sale, the vice president directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. This represents a 13.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.30% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have recently commented on CMI shares. JPMorgan Chase & Co. cut their target price on Cummins from $600.00 to $465.00 and set a "neutral" rating on the stock in a research report on Friday, November 6th. Wall Street Zen raised Cummins from a "hold" rating to a "buy" rating in a research report on Tuesday, November 10th. Freedom Broker decreased their target price on Cummins from $800.00 to $720.00 and set a "buy" rating for the company in a research report on Wednesday. UBS Group dropped their price target on Cummins from $741.00 to $675.00 and set a "buy" rating on the stock in a research note on Tuesday. Finally, Morgan Stanley set a $720.00 price target on Cummins in a research note on Wednesday. Thirteen equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $659.44.

Cummins Stock Down 0.8%

Shares of NYSE:CMI opened at $451.68 on Friday. The stock has a market cap of $61.92 billion, a P/E ratio of 18.85, a P/E/G ratio of 1.21 and a beta of 1.26. The firm has a fifty day moving average price of $516.73 and a 200 day moving average price of $596.65. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.74 and a quick ratio of 1.13. Cummins Inc. has a 1-year low of $443.62 and a 1-year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported $8.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.20 by $0.05. Cummins had a net margin of 9.26% and a return on equity of 26.82%. The company had revenue of $9.44 billion for the quarter, compared to the consensus estimate of $9.89 billion. During the same period last year, the firm posted $5.59 EPS. Cummins's revenue for the quarter was up 13.5% on a year-over-year basis. Sell-side analysts predict that Cummins Inc. will post 29.83 EPS for the current 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 issued a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.9%. Cummins's dividend payout ratio (DPR) is currently 36.73%.

About Cummins

Cummins Inc. is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications. The company's offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.

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