Cummins Inc. $CMI Stock: Vontobel Holding Ltd. Raises Position

Key Points

• Vontobel Holding increased its Cummins stake by 1,436.1% in the third quarter, bringing its holdings to 584,674 shares worth approximately $302 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above expectations, but earnings per share of $6.73 missed estimates of $7.21. The stock recently traded at $530.72, 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 payout and a 1.7% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $708.18.

Vontobel Holding Ltd. raised its stake in Cummins Inc. (NYSE:CMI - Free Report) by 1,436.1% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 584,674 shares of the company's stock after acquiring an additional 546,613 shares during the period. Cummins accounts for approximately 1.1% of Vontobel Holding Ltd.'s portfolio, making the stock its 20th largest position. Vontobel Holding Ltd. owned approximately 0.42% of Cummins worth $302,025,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the business. TD Waterhouse Canada Inc. boosted its holdings in shares of Cummins by 262.1% in the third quarter. TD Waterhouse Canada Inc. now owns 167,468 shares of the company's stock valued at $86,509,000 after acquiring an additional 121,216 shares in the last quarter. Stronghold Wealth Management L.L.C. raised its holdings in Cummins by 13.4% during the third quarter. Stronghold Wealth Management L.L.C. now owns 389 shares of the company's stock worth $201,000 after purchasing an additional 46 shares during the last quarter. Cyndeo Wealth Partners LLC boosted its position in shares of Cummins by 1,646.9% in the 3rd quarter. Cyndeo Wealth Partners LLC now owns 18,080 shares of the company's stock worth $9,340,000 after buying an additional 17,045 shares in the last quarter. Aspiriant LLC grew its position in shares of Cummins by 7.1% in the third quarter. Aspiriant LLC now owns 709 shares of the company's stock valued at $366,000 after purchasing an additional 47 shares during the last quarter. Finally, Shelton Wealth Management LLC purchased a new position in Cummins during the third quarter worth $1,301,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Cummins

In other 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 sale, the vice president owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.30% of the company's stock.

Cummins Price Performance

NYSE:CMI traded down $2.01 during trading hours on Friday, reaching $530.72. 1,255,487 shares of the company's stock were exchanged, compared to its average volume of 1,127,504. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $73.06 billion, a P/E ratio of 27.12, a price-to-earnings-growth ratio of 1.41 and a beta of 1.24. The business's 50-day simple moving average is $555.86 and its two-hundred day simple moving average is $619.86. Cummins Inc. has a 12 month low of $405.82 and a 12 month high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share 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 quarter in the previous year, the firm posted $6.43 earnings per share. The company's revenue for the quarter was up 9.4% on a year-over-year basis. Sell-side analysts expect that Cummins Inc. will post 29.98 EPS for the current fiscal 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 $2.20 dividend. This represents a $8.80 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, November 20th. Cummins's payout ratio is currently 44.97%.

Analyst Ratings Changes

Several research firms recently weighed in on CMI. DA Davidson increased their target price on Cummins from $605.00 to $750.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. lowered their price target on Cummins from $690.00 to $600.00 and set a "neutral" rating for the company in a report on Wednesday, September 23rd. CICC Research assumed coverage on shares of Cummins in a research note on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective on the stock. Wells Fargo & Company cut their price target on Cummins from $874.00 to $760.00 and set an "overweight" rating on the stock in a research note on Thursday, October 8th. Finally, Citigroup reduced their price objective on shares of Cummins from $790.00 to $630.00 and set a "buy" rating on the stock in a research note on Monday, October 12th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Cummins has an average rating of "Moderate Buy" and an average target price of $708.18.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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