Cummins Inc. $CMI Stock: Beutel Goodman & Co Ltd. Lowers Position

Key Points

• Beutel Goodman cut its Cummins stake by 4.4%, selling 7,148 shares and ending the quarter with 154,989 shares worth about $80.1 million. Several other institutional investors increased their holdings.
• Cummins reported quarterly earnings of $8.25 per share, slightly above estimates, while revenue of $9.44 billion missed forecasts; revenue nevertheless rose 13.5% year over year.
• Analyst views have become more cautious, with several firms lowering price targets, while AI data-center power demand and a strong backlog may support growth. Supply constraints and weakness in the truck market remain risks.

Beutel Goodman & Co Ltd. trimmed its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 4.4% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 154,989 shares of the company's stock after selling 7,148 shares during the period. Beutel Goodman & Co Ltd. owned about 0.11% of Cummins worth $80,062,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in CMI. Wellington Management Group LLP raised its position in shares of Cummins by 243.5% during the second quarter. Wellington Management Group LLP now owns 495,047 shares of the company's stock valued at $353,072,000 after buying an additional 350,910 shares during the last quarter. Fulcrum Wealth Advisors LLC lifted its holdings in shares of Cummins by 611.8% in the third quarter. Fulcrum Wealth Advisors LLC now owns 16,264 shares of the company's stock worth $8,401,000 after buying an additional 13,979 shares in the last quarter. CWS Financial Advisors LLC boosted its position in shares of Cummins by 973.2% during the third quarter. CWS Financial Advisors LLC now owns 4,733 shares of the company's stock worth $2,445,000 after acquiring an additional 4,292 shares during the last quarter. MassMutual Private Wealth & Trust FSB boosted its position in shares of Cummins by 45.2% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 14,571 shares of the company's stock worth $6,981,000 after acquiring an additional 4,538 shares during the last quarter. Finally, Legacy Private Trust Co. grew its stake in Cummins by 1,264.1% during the third quarter. Legacy Private Trust Co. now owns 12,222 shares of the company's stock valued at $6,314,000 after acquiring an additional 11,326 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Cummins Stock Up 3.7%

Shares of CMI opened at $466.73 on Tuesday. 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 stock has a market capitalization of $64.25 billion, a price-to-earnings ratio of 19.48, a price-to-earnings-growth ratio of 1.24 and a beta of 1.26. Cummins Inc. has a 1 year low of $443.62 and a 1 year high of $737.76. The business's 50 day simple moving average is $524.50 and its 200-day simple moving average is $599.03.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported $8.25 earnings per share for the quarter, beating analysts' consensus estimates of $8.20 by $0.05. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.89 billion. During the same period last year, the firm posted $5.59 earnings per share. Cummins's revenue for the quarter was up 13.5% compared to the same quarter last year. As a group, equities analysts expect that Cummins Inc. will post 29.98 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be given a dividend of $2.20 per share. The ex-dividend date is Friday, November 20th. This represents a $8.80 annualized dividend and a yield of 1.9%. Cummins's dividend payout ratio (DPR) is 36.73%.

Insider Buying and Selling

In other Cummins news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction on Monday, August 24th. The shares were 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 directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.30% of the stock is owned by company insiders.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: AI data-center power demand and a strong order backlog could support growth. However, supply constraints may limit the company’s ability to meet demand. Zacks article
• Neutral Sentiment: Barclays cut its price target to $600 from $675 but maintained an Overweight rating, indicating it still sees potential upside from the referenced share price. Barclays rating information
• Neutral Sentiment: Oppenheimer maintained its Hold rating, while Wells Fargo, Citigroup and Truist also reduced their price targets; the reports provided do not specify the new targets. Oppenheimer rating Wells Fargo target report Citigroup target report Truist target report
• Negative Sentiment: JPMorgan lowered its target sharply, from $600 to $465, and moved to a Neutral rating. The bank’s target is approximately in line with the referenced share price. JPMorgan rating information
• Negative Sentiment: An analysis cited cuts to fair value estimates as analysts trimmed growth and margin expectations. Truck-market weakness is another concern alongside supply constraints. Yahoo Finance article

Analysts Set New Price Targets

A number of analysts have issued reports on CMI shares. Wells Fargo & Company reduced their price target on shares of Cummins from $608.00 to $520.00 and set an "overweight" rating on the stock in a report on Friday. Bank of America decreased their price target on shares of Cummins from $731.00 to $600.00 in a research note on Thursday, September 24th. Sanford C. Bernstein reissued a "market perform" rating and set a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Finally, Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, Cummins has an average rating of "Moderate Buy" and an average price target of $662.18.

Cummins Profile

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.

Cummins serves customers in markets around the world through manufacturing operations, distribution networks and service locations.

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