First Eagle Investment Management LLC Trims Holdings in Cummins Inc. $CMI

Key Points

• First Eagle Investment Management cut its Cummins stake by 47% in the fourth quarter, selling 668,563 shares and ending with 754,938 shares valued at about $385.4 million.
• Insider selling continued, with VP Amy Rochelle Davis and VP Nathan R. Stoner both reducing holdings; insiders have sold 34,073 shares worth about $20.8 million over the last three months.
• Analysts remain broadly positive after Cummins beat quarterly earnings expectations, with multiple firms raising price targets; the consensus rating is Moderate Buy and the average target is $677.87.

First Eagle Investment Management LLC lowered its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 47.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 754,938 shares of the company's stock after selling 668,563 shares during the period. First Eagle Investment Management LLC owned about 0.55% of Cummins worth $385,358,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Thompson Investment Management Inc. purchased a new position in shares of Cummins during the fourth quarter valued at $26,000. Activest Wealth Management increased its stake in shares of Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after buying an additional 43 shares during the period. Ares Financial Consulting LLC purchased a new position in shares of Cummins during the fourth quarter valued at $29,000. Holos Integrated Wealth LLC purchased a new position in shares of Cummins during the fourth quarter valued at $32,000. Finally, Palouse Capital Management Inc. purchased a new position in shares of Cummins during the fourth quarter valued at $33,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the business's 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 sale, the vice president owned 15,807 shares in the company, valued at approximately $8,873,101.38. The trade was a 20.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Nathan R. Stoner sold 607 shares of the business's stock in a transaction dated Monday, May 11th. The stock was 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. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 34,073 shares of company stock valued at $20,794,687. Insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

CMI has been the topic of several research reports. Morgan Stanley raised their price target on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Truist Financial set a $815.00 price target on Cummins in a research note on Wednesday, May 6th. Barclays raised their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. lifted their target price on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Finally, Citigroup lifted their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $677.87.

Cummins Stock Up 3.3%

NYSE:CMI opened at $701.70 on Tuesday. Cummins Inc. has a fifty-two week low of $307.90 and a fifty-two week high of $718.08. The stock has a market capitalization of $96.83 billion, a P/E ratio of 36.41, a P/E/G ratio of 1.71 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The company's 50-day simple moving average is $590.90 and its 200-day simple moving average is $547.40.

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

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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