Eurizon Capital SGR S.p.A. Buys Shares of 60,484 Cummins Inc. $CMI

Key Points

• Eurizon Capital SGR S.p.A. disclosed a new fourth-quarter stake in Cummins, buying 60,484 shares valued at about $30.9 million.
• Cummins reported stronger-than-expected Q1 results, with EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, up 2.7% year over year.
• The company announced a quarterly dividend of $2.00 per share, or $8.00 annualized, implying a 1.2% yield; meanwhile, analysts currently rate the stock a Moderate Buy with a consensus target price of $700.50.

Eurizon Capital SGR S.p.A. bought a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 60,484 shares of the company's stock, valued at approximately $30,897,000.

Several other institutional investors have also modified their holdings of the business. Thompson Investment Management Inc. purchased a new position in Cummins in the fourth quarter valued at $26,000. Activest Wealth Management boosted its holdings in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after purchasing an additional 43 shares during the period. Wellington Shields Capital Management LLC purchased a new position in Cummins in the fourth quarter valued at $27,000. Ares Financial Consulting LLC purchased a new position in Cummins in the fourth quarter valued at $29,000. Finally, Osterweis Capital Management Inc. purchased a new position in Cummins in the second quarter valued at $31,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

Shares of CMI stock opened at $646.53 on Friday. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The firm has a fifty day moving average price of $623.70 and a 200 day moving average price of $569.87. The company has a market cap of $89.22 billion, a P/E ratio of 33.55, a PEG ratio of 1.57 and a beta of 1.27. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company's revenue was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $5.96 earnings per share. Sell-side analysts predict that Cummins Inc. will post 29.4 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be paid a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.2%. The ex-dividend date is Friday, May 22nd. Cummins's dividend payout ratio is currently 41.52%.

Insider Buying and Selling

In other Cummins news, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the completion of the transaction, the vice president owned 8,316 shares in the company, valued at $5,912,010.72. This represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Amy Rochelle Davis sold 4,054 shares of the company's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares of the company's stock, valued at $8,873,101.38. This represents a 20.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 17,633 shares of company stock valued at $11,653,357 over the last ninety days. Company insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CMI. Weiss Ratings lowered Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. Raymond James Financial lifted their target price on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday. JPMorgan Chase & Co. lifted their target price on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Finally, Robert W. Baird set a $700.00 target price on Cummins in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $700.50.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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