Cummins Inc. $CMI Stock: Conning Inc. Raises Position

Key Points

• Conning Inc. increased its Cummins stake by 31.2% during the third quarter, bringing its holdings to 71,538 shares valued at approximately $36.95 million. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of the $7.21 analyst consensus. The stock opened at $529.59, well below its 12-month high of $737.76.
• The company declared a quarterly dividend of $2.20 per share, equivalent to an annualized $8.80 and a 1.7% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $694.24.

Conning Inc. boosted its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 31.2% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 71,538 shares of the company's stock after buying an additional 17,005 shares during the period. Conning Inc. owned approximately 0.05% of Cummins worth $36,954,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in shares of Cummins during the 2nd quarter valued at about $8,204,241,000. Bank of America Corp DE purchased a new position in shares of Cummins during the second quarter worth about $1,408,353,000. Bank of New York Mellon Corp bought a new position in shares of Cummins in the second quarter worth approximately $973,198,000. Robeco Institutional Asset Management B.V. increased its position in shares of Cummins by 6.4% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock worth $530,405,000 after purchasing an additional 62,107 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in Cummins in the second quarter valued at approximately $666,635,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Price Performance

CMI opened at $529.59 on Thursday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $72.90 billion, a P/E ratio of 27.06, a PEG ratio of 1.37 and a beta of 1.24. The stock has a 50-day moving average price of $540.40 and a 200-day moving average price of $602.50. Cummins Inc. has a 12-month low of $418.77 and a 12-month high of $737.76.

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

Cummins Announces Dividend

The firm also recently declared 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. 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 presently 44.97%.

Insider Buying and Selling

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

Wall Street Analyst Weigh In

CMI has been the subject of several research analyst reports. Evercore dropped their target price on shares of Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a research report on Tuesday, August 11th. UBS Group decreased their price target on shares of Cummins from $835.00 to $741.00 and set a "buy" rating on the stock in a report on Wednesday, September 30th. DA Davidson raised their price objective on shares of Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Citigroup lowered their price objective on shares of Cummins from $790.00 to $630.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Finally, CICC Research assumed coverage on shares of Cummins in a report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective for the company. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $694.24.

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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