Cummins Inc. $CMI Stock: D.A. Davidson & CO. Decreases Holdings

Key Points

• D.A. Davidson reduced its Cummins position by 6.6% in the third quarter, selling 15,991 shares and retaining 225,246 shares valued at approximately $116.4 million. Institutional investors collectively own 83.46% of the company.
• Analysts remain broadly positive, with 13 Buy ratings and five Holds; Cummins has a “Moderate Buy” consensus rating and an average price target of $694.24, despite several recent target-price cuts.
• Cummins shares opened at $529.59, well below their 52-week high of $737.76. The company reported quarterly revenue growth of 9.4% year over year but missed earnings expectations, while maintaining a quarterly dividend of $2.20 per share, yielding about 1.7%.

D.A. Davidson & CO. reduced its position in Cummins Inc. (NYSE:CMI - Free Report) by 6.6% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 225,246 shares of the company's stock after selling 15,991 shares during the quarter. D.A. Davidson & CO.'s holdings in Cummins were worth $116,356,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of CMI. BlackRock Inc. acquired a new position in shares of Cummins in the 2nd quarter worth approximately $8,204,241,000. Bank of America Corp DE acquired a new stake in shares of Cummins during the 2nd quarter valued at approximately $1,408,353,000. Bank of New York Mellon Corp acquired a new stake in shares of Cummins during the 2nd quarter valued at approximately $973,198,000. Legal & General Group Plc acquired a new stake in shares of Cummins during the 2nd quarter valued at approximately $666,635,000. Finally, Vontobel Holding Ltd. lifted its stake in Cummins by 1,436.1% during the third quarter. Vontobel Holding Ltd. now owns 584,674 shares of the company's stock worth $302,025,000 after purchasing an additional 546,613 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on CMI. DA Davidson boosted their target price on shares of Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Truist Financial reduced their price target on shares of Cummins from $894.00 to $779.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Barclays decreased their price target on shares of Cummins from $760.00 to $675.00 and set an "overweight" rating for the company in a report on Monday, October 19th. Citigroup lowered their price objective on shares of Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Finally, Wells Fargo & Company dropped their price objective on shares of Cummins from $760.00 to $608.00 and set an "overweight" rating on the stock in a research note on Monday. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Cummins has an average rating of "Moderate Buy" and an average price target of $694.24.

Cummins Price Performance

Shares of NYSE:CMI opened at $529.59 on Thursday. The firm's 50 day moving average is $540.40 and its two-hundred day moving average is $602.50. The firm 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 company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. Cummins Inc. has a 52 week low of $418.77 and a 52 week high of $737.76.

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 business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the prior year, the firm posted $6.43 earnings per share. The business's quarterly revenue was up 9.4% on a year-over-year basis. Analysts anticipate that Cummins Inc. will post 29.98 earnings per share for the current year.

Cummins Dividend Announcement

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 payout ratio is 44.97%.

Insider Transactions at Cummins

In other news, VP Earl Newsome sold 698 shares of the stock in a transaction on 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 approximately $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company 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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