Fideuram Intesa Sanpaolo Private Banking S.P.A. Invests $17.58 Million in Cummins Inc. $CMI

Key Points

• Fideuram Intesa Sanpaolo Private Banking initiated a new position in Cummins, buying 34,436 shares valued at about $17.58 million in the fourth quarter.
• Institutional ownership of Cummins remains heavy, with hedge funds and other investors controlling 83.46% of the stock; several large holders, including Vanguard and Fisher Asset Management, also increased their stakes.
• Cummins reported better-than-expected quarterly earnings of $6.15 per share on revenue of $8.40 billion, while analysts currently rate the stock Moderate Buy with a consensus price target of $677.87.

Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new position in Cummins Inc. (NYSE:CMI - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 34,436 shares of the company's stock, valued at approximately $17,578,000.

Several other institutional investors and hedge funds also recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of Cummins by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after buying an additional 98,544 shares during the period. Fisher Asset Management LLC lifted its stake in shares of Cummins by 2.8% in the third quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock worth $1,422,121,000 after acquiring an additional 91,956 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Cummins by 10,317.7% in 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 acquiring an additional 2,434,876 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Cummins by 0.5% in the third quarter. Dimensional Fund Advisors LP now owns 1,537,347 shares of the company's stock worth $649,280,000 after acquiring an additional 7,372 shares in the last quarter. Finally, Raymond James Financial Inc. lifted its stake in shares of Cummins by 4.5% in the third quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company's stock worth $640,090,000 after acquiring an additional 64,822 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

CMI has been the topic of several recent analyst reports. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. UBS Group set a $565.00 price target on Cummins and gave the stock a "neutral" rating in a research note on Friday, February 6th. JPMorgan Chase & Co. boosted their price target on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Finally, Sanford C. Bernstein set a $600.00 price target on Cummins and gave the stock a "market perform" rating in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $677.87.

Insider Activity

In other Cummins news, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, 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 sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Nathan R. Stoner sold 607 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $694.06, for a total value of $421,294.42. Following the sale, the vice president owned 9,447 shares in the company, valued at $6,556,784.82. The trade was a 6.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 22,397 shares of company stock valued at $14,465,833 over the last three months. Company insiders own 0.30% of the company's stock.

Cummins Trading Down 2.8%

Shares of NYSE CMI opened at $658.67 on Wednesday. The stock's 50 day moving average price is $606.31 and its two-hundred day moving average price is $558.95. Cummins Inc. has a 52-week low of $307.90 and a 52-week high of $718.08. The stock has a market capitalization of $90.89 billion, a P/E ratio of 34.18, a PEG ratio of 1.71 and a beta of 1.27. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter in the prior year, the firm posted $5.96 earnings per share. Cummins's revenue for the quarter was up 2.7% compared to the same quarter last year. On average, analysts anticipate that Cummins Inc. will post 28.39 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company 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 dividend of $2.00 per share. The ex-dividend date is Friday, May 22nd. This represents a $8.00 annualized dividend and a yield of 1.2%. Cummins's dividend payout ratio is presently 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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