Cummins Inc. (NYSE:CMI) Stake Lessened by Fjarde AP Fonden Fourth Swedish National Pension Fund

Key Points

• Fjarde AP Fonden Fourth Swedish National Pension Fund reduced its stake in Cummins Inc. by 25.9%, now holding 29,161 shares worth approximately $9.14 million.
• Multiple hedge funds, including Vanguard Group and Northern Trust Corp, increased their positions in Cummins, indicating strong institutional interest in the company.
• Cummins reported strong quarterly earnings, with $6.43 EPS exceeding estimates, and announced a quarterly dividend increase, raising the amount to $2.00 per share.

Fjarde AP Fonden Fourth Swedish National Pension Fund lowered its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 25.9% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 29,161 shares of the company's stock after selling 10,209 shares during the period. Fjarde AP Fonden Fourth Swedish National Pension Fund's holdings in Cummins were worth $9,140,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the business. Vanguard Group Inc. boosted its position in Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after purchasing an additional 321,823 shares during the last quarter. Northern Trust Corp boosted its position in Cummins by 15.1% during the fourth quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock valued at $656,418,000 after purchasing an additional 246,807 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Cummins by 6.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock valued at $566,856,000 after purchasing an additional 99,009 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in Cummins by 0.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,585,802 shares of the company's stock valued at $552,820,000 after purchasing an additional 12,722 shares during the last quarter. Finally, Royal Bank of Canada boosted its position in Cummins by 3.7% during the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock valued at $443,169,000 after purchasing an additional 44,907 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Analyst Ratings Changes

A number of analysts recently issued reports on CMI shares. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Truist Financial lifted their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Citigroup lifted their price objective on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Robert W. Baird raised their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Finally, Wells Fargo & Company upgraded Cummins to an "overweight" rating in a report on Monday. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $370.83.

Cummins Stock Down 0.4%

NYSE CMI opened at $405.25 on Friday. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The stock's 50 day moving average is $346.07 and its two-hundred day moving average is $332.72. The company has a market capitalization of $55.84 billion, a price-to-earnings ratio of 19.05, a PEG ratio of 1.98 and a beta of 1.02. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The company's quarterly revenue was down 1.7% on a year-over-year basis. During the same period in the previous year, the business earned $5.26 earnings per share. Equities analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is presently 34.23%.

Insider Transactions at Cummins

In other news, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. The trade was a 38.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares in the company, valued at $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 17,870 shares of company stock valued at $7,091,899 in the last three months. 0.41% of the stock is owned by corporate insiders.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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