Fullerton Fund Management Co Ltd. Purchases New Stake in Cummins Inc. $CMI

Key Points

• Fullerton Fund Management opened a new position in Cummins during the fourth quarter, buying 1,452 shares worth about $741,000.
• Several other institutional investors also adjusted their Cummins holdings, and institutional ownership stands at 83.46% of the stock.
• Cummins reported better-than-expected quarterly results, with EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, while analysts currently view the stock as a Moderate Buy with an average target price of $726.14.

Fullerton Fund Management Co Ltd. purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 1,452 shares of the company's stock, valued at approximately $741,000.

Several other hedge funds have also added to or reduced their stakes in the company. Blair William & Co. IL boosted its holdings in Cummins by 4.1% in the fourth quarter. Blair William & Co. IL now owns 50,080 shares of the company's stock valued at $25,564,000 after acquiring an additional 1,990 shares during the last quarter. Opal Capital LLC bought a new position in Cummins in the fourth quarter valued at about $258,000. Rothschild Wealth LLC bought a new position in Cummins in the fourth quarter valued at about $347,000. Cynosure Group LLC bought a new position in Cummins in the fourth quarter valued at about $575,000. Finally, 71 West Capital Partners bought a new position in Cummins in the fourth quarter valued at about $432,000. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Citigroup raised their target price on Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. raised their target price on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Raymond James Financial raised their target price on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a report on Tuesday, May 26th. Finally, Argus raised their target price on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Cummins has an average rating of "Moderate Buy" and a consensus target price of $726.14.

Cummins Price Performance

Shares of CMI opened at $701.15 on Wednesday. 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 1 year low of $307.90 and a 1 year high of $718.08. The stock has a market cap of $96.75 billion, a P/E ratio of 36.39, a price-to-earnings-growth ratio of 1.66 and a beta of 1.24. The stock's 50-day moving average price is $654.05 and its two-hundred day moving average price is $586.69.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company's revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the business earned $5.96 earnings per share. On average, equities analysts predict that Cummins Inc. will post 29.29 earnings per share for the current year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. Cummins's dividend payout ratio (DPR) is currently 41.52%.

Insider Activity at Cummins

In other news, EVP Bonnie J. Fetch sold 652 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the sale, the executive vice president owned 11,679 shares of the company's stock, valued at $8,177,519.01. This trade represents a 5.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Nathan R. Stoner sold 607 shares of the firm'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 directly owned 9,447 shares in the company, valued at approximately $6,556,784.82. This represents 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 13,579 shares of company stock valued at $9,377,684 over the last 90 days. Insiders own 0.30% of the company's stock.

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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