Cummins Inc. $CMI Stock: Citizens Financial Group Inc. RI Boosts Holdings

Key Points

• Citizens Financial Group increased its Cummins stake by 11.9% in the third quarter to 42,951 shares valued at approximately $22.2 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a “Moderate Buy” consensus, with 13 Buy ratings and five Holds, though the average price target is $703.18 after several brokerages reduced their targets.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but EPS of $6.73 fell short of estimates. The company declared a quarterly dividend of $2.20 per share, representing a 1.7% annualized yield.

Citizens Financial Group Inc. RI grew its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 11.9% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 42,951 shares of the company's stock after acquiring an additional 4,582 shares during the period. Citizens Financial Group Inc. RI's holdings in Cummins were worth $22,187,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also modified their holdings of the stock. Persistent Asset Partners Ltd acquired a new stake in Cummins in the 2nd quarter valued at about $26,000. Elevation Wealth Partners LLC grew its position in shares of Cummins by 91.7% during the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock worth $33,000 after buying an additional 22 shares in the last quarter. Cedar Mountain Advisors LLC grew its position in shares of Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after buying an additional 45 shares in the last quarter. Key Financial Inc increased its stake in shares of Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after buying an additional 20 shares during the period. Finally, Cornerstone Financial Management LLC raised its holdings 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. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CMI. Zacks Research downgraded shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Morgan Stanley increased their price objective on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Barclays reduced 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, October 19th. Truist Financial decreased their price objective on shares of Cummins from $894.00 to $779.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Finally, Citigroup dropped their target price on Cummins from $790.00 to $630.00 and set a "buy" rating on the stock in a report on Monday, October 12th. Thirteen research 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 presently has an average rating of "Moderate Buy" and an average target price of $703.18.

Insider Buying and Selling

In other Cummins news, VP Earl Newsome sold 698 shares of Cummins 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 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 filing with the SEC, which is available at this hyperlink. 0.30% of the stock is currently owned by company insiders.

Cummins Price Performance

Shares of CMI opened at $517.64 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. Cummins Inc. has a 1-year low of $413.98 and a 1-year high of $737.76. The stock has a market cap of $71.26 billion, a PE ratio of 26.45, a price-to-earnings-growth ratio of 1.37 and a beta of 1.24. The firm has a fifty day moving average price of $545.26 and a 200 day moving average price of $619.42.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The firm had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same period in the previous year, the business posted $6.43 EPS. The business's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cummins Inc. will post 29.98 EPS for the current year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be paid a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, November 20th. Cummins's dividend payout ratio (DPR) is currently 44.97%.

Cummins 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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