Formuepleje A S Trims Stock Position in Cummins Inc. $CMI

Key Points

• Formuepleje A S reduced its Cummins position by 13.3% in the second quarter, selling 7,193 shares and retaining 46,876 shares valued at approximately $33.4 million. Institutional investors collectively own 83.46% of the company.
• Analyst sentiment remains positive, with 11 Buy ratings and four Holds, producing a consensus rating of “Moderate Buy” and an average price target of $764.54.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, although EPS of $6.73 missed estimates. The company also raised its quarterly dividend to $2.20 per share, implying a 1.6% yield.

Formuepleje A S lessened its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 13.3% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 46,876 shares of the company's stock after selling 7,193 shares during the period. Cummins comprises approximately 2.6% of Formuepleje A S's holdings, making the stock its 16th biggest position. Formuepleje A S's holdings in Cummins were worth $33,432,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. California State Teachers Retirement System raised its position in Cummins by 71,801.8% in the second quarter. California State Teachers Retirement System now owns 148,240,699 shares of the company's stock worth $105,726,749,000 after acquiring an additional 148,034,528 shares during the period. BlackRock Inc. purchased a new stake in shares of Cummins in the 2nd quarter worth $8,204,241,000. State Street Corp raised its holdings in Cummins by 0.8% in the 4th quarter. State Street Corp now owns 6,509,852 shares of the company's stock worth $3,322,954,000 after purchasing an additional 49,628 shares during the period. Geode Capital Management LLC lifted its position in Cummins by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock valued at $1,822,534,000 after purchasing an additional 35,286 shares in the last quarter. Finally, Fisher Asset Management LLC grew its holdings in Cummins by 1.3% during the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock valued at $1,741,004,000 after purchasing an additional 43,722 shares during the period. 83.46% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

CMI has been the topic of a number of analyst reports. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Citigroup increased their target price on shares of Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Sanford C. Bernstein restated a "market perform" rating and set a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Truist Financial set a $894.00 price target on shares of Cummins in a report on Wednesday, August 5th. Finally, Wells Fargo & Company upped their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $764.54.

Insider Activity at Cummins

In other news, VP Earl Newsome sold 698 shares of the business's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the transaction, the vice president owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.30% of the company's stock.

Cummins Stock Performance

NYSE CMI opened at $561.44 on Monday. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. Cummins Inc. has a twelve month low of $390.11 and a twelve month high of $737.76. The business has a 50-day moving average price of $632.30 and a 200-day moving average price of $626.67. The firm has a market cap of $77.29 billion, a price-to-earnings ratio of 28.69, a price-to-earnings-growth ratio of 1.52 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same period last year, the business posted $6.43 EPS. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts predict that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were given a dividend of $2.20 per share. The ex-dividend date was Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. Cummins's dividend payout ratio (DPR) is 44.97%.

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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