Fideuram Asset Management Ireland dac Purchases New Shares in Cummins Inc. $CMI

Key Points

• Fideuram Asset Management Ireland dac bought a new stake in Cummins during the fourth quarter, purchasing 6,733 shares valued at about $3.44 million.
• Institutional ownership in Cummins remains very high, with several other funds adding positions and about 83.46% of the stock now held by institutions and hedge funds.
• Cummins reported solid quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above expectations, while also declaring a $2.00 quarterly dividend.

Fideuram Asset Management Ireland dac purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 6,733 shares of the company's stock, valued at approximately $3,437,000.

Several other institutional investors and hedge funds have also modified their holdings of CMI. Northwestern Mutual Wealth Management Co. grew its stake in Cummins by 10,317.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after buying an additional 2,434,876 shares in the last quarter. Boston Partners acquired a new stake in Cummins during the third quarter worth about $473,471,000. London Co. of Virginia acquired a new stake in Cummins during the third quarter worth about $231,732,000. Bank of New York Mellon Corp grew its stake in Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock worth $612,715,000 after buying an additional 488,430 shares in the last quarter. Finally, Nordea Investment Management AB grew its stake in Cummins by 103.8% during the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock worth $280,397,000 after buying an additional 278,350 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on CMI shares. Raymond James Financial increased their price objective on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday. Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. UBS Group set a $565.00 price objective on shares of Cummins and gave the stock a "neutral" rating in a research note on Friday, February 6th. Citigroup increased their price objective on shares of Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Finally, Evercore reiterated an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $700.50.

Insider Transactions at Cummins

In other news, CAO Nicole Lamb-Hale sold 2,408 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares of the company's stock, valued at approximately $9,652,328.56. This represents a 14.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction dated Tuesday, March 3rd. The stock was 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 directly owned 15,807 shares of the company's stock, valued at $8,873,101.38. This trade represents a 20.41% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 17,633 shares of company stock valued at $11,653,357. 0.30% of the stock is owned by company insiders.

Cummins Stock Down 0.1%

CMI stock opened at $667.47 on Friday. The stock has a market capitalization of $92.10 billion, a P/E ratio of 34.64, a price-to-earnings-growth ratio of 1.63 and a beta of 1.27. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08. The firm has a 50-day moving average price of $621.63 and a 200-day moving average price of $569.33.

Cummins (NYSE:CMI - Get Free Report) last posted 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 analysts' expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $5.96 earnings per share. As a group, equities research analysts anticipate that Cummins Inc. will post 29.4 EPS for the current fiscal year.

Cummins Announces Dividend

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

Cummins Company Profile

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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