Cummins Inc. $CMI Stock: Nisa Investment Advisors LLC Cuts Holdings

Key Points

• Nisa Investment Advisors reduced its Cummins stake by 3.7% in the third quarter, selling 2,070 shares and retaining 53,231 shares valued at approximately $27.5 million. Institutional investors and hedge funds collectively own 83.46% of the stock.
• Analyst sentiment remains generally positive, with 13 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $703.18. However, Barclays and JPMorgan recently lowered their price targets to $675 and $600, respectively.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, though earnings per share of $6.73 missed estimates of $7.21. The company declared a quarterly dividend of $2.20, equivalent to an annualized $8.80 payout and a 1.6% yield.

Nisa Investment Advisors LLC lessened its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 3.7% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 53,231 shares of the company's stock after selling 2,070 shares during the quarter. Nisa Investment Advisors LLC's holdings in Cummins were worth $27,498,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Cummins during the second quarter worth $8,204,241,000. Bank of America Corp DE purchased a new stake in Cummins in the second quarter valued at $1,408,353,000. Bank of New York Mellon Corp acquired a new position in shares of Cummins in the 2nd quarter valued at $973,198,000. Robeco Institutional Asset Management B.V. lifted its stake in shares of Cummins by 6.4% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock valued at $530,405,000 after purchasing an additional 62,107 shares during the last quarter. Finally, Legal & General Group Plc purchased a new position in shares of Cummins during the 2nd quarter worth $666,635,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

CMI has been the subject of a number of recent analyst reports. Barclays cut their price objective on Cummins from $760.00 to $675.00 and set an "overweight" rating for the company in a research report on Monday. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Cummins from $690.00 to $600.00 and set a "neutral" rating for the company in a research note on Wednesday, September 23rd. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $703.18.

Cummins Stock Up 2.5%

Shares of NYSE CMI opened at $535.42 on Wednesday. The firm has a market cap of $73.71 billion, a price-to-earnings ratio of 27.36, a PEG ratio of 1.38 and a beta of 1.24. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. Cummins Inc. has a 52-week low of $407.57 and a 52-week high of $737.76. The business's 50 day moving average is $551.71 and its two-hundred day moving average is $620.41.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates 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 analyst estimates of $9.33 billion. During the same quarter last year, the company earned $6.43 earnings per share. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. Research analysts predict that Cummins Inc. will post 29.98 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be issued a $2.20 dividend. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, November 20th. Cummins's payout ratio is currently 44.97%.

Insider Transactions at Cummins

In related news, VP Earl Newsome sold 698 shares of the stock in a transaction dated 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 approximately $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 accessible through this hyperlink. Insiders own 0.30% of the company's stock.

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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