Generali Asset Management SPA SGR Grows Stock Holdings in Cummins Inc. $CMI

Key Points

• Generali Asset Management more than doubled its stake in Cummins, increasing holdings by 117.1% in the fourth quarter to 12,768 shares valued at about $6.5 million.
• Cummins reported stronger-than-expected quarterly results, posting EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, which was slightly above expectations and up 2.7% year over year.
• Analysts remain broadly constructive on the stock: the consensus rating is “Moderate Buy,” with an average target price of $649.47, though the shares were down 0.5% in Friday trading.

Generali Asset Management SPA SGR increased its stake in Cummins Inc. (NYSE:CMI - Free Report) by 117.1% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 12,768 shares of the company's stock after purchasing an additional 6,887 shares during the quarter. Generali Asset Management SPA SGR's holdings in Cummins were worth $6,517,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. boosted its position in Cummins by 8.4% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock worth $13,107,000 after purchasing an additional 2,417 shares during the last quarter. New York State Teachers Retirement System increased its position in shares of Cummins by 2.1% during the 3rd quarter. New York State Teachers Retirement System now owns 111,911 shares of the company's stock valued at $47,268,000 after purchasing an additional 2,305 shares during the last quarter. Bailard Inc. increased its position in shares of Cummins by 7.2% during the 3rd quarter. Bailard Inc. now owns 59,830 shares of the company's stock valued at $25,270,000 after purchasing an additional 4,035 shares during the last quarter. Fisher Asset Management LLC lifted its stake in shares of Cummins by 2.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock worth $1,422,121,000 after purchasing an additional 91,956 shares during the period. Finally, Accredited Wealth Management LLC boosted its holdings in shares of Cummins by 3,100.0% in the third quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock worth $1,352,000 after buying an additional 3,100 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Cummins Trading Down 0.5%

Cummins stock opened at $679.25 on Friday. Cummins Inc. has a 1 year low of $305.13 and a 1 year high of $718.08. The firm's 50 day moving average price is $586.92 and its 200-day moving average price is $543.54. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.16. The stock has a market cap of $93.73 billion, a P/E ratio of 35.25, a PEG ratio of 1.75 and a beta of 1.27.

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 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 period in the previous year, the firm posted $5.96 earnings per share. The business's revenue was up 2.7% compared to the same quarter last year. On average, equities analysts predict that Cummins Inc. will post 27.9 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were given a $2.00 dividend. The ex-dividend date was Friday, February 20th. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's dividend payout ratio (DPR) is currently 41.52%.

Analyst Ratings Changes

CMI has been the subject of several recent research reports. Raymond James Financial boosted their target price on shares of Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a research report on Monday, February 9th. Wells Fargo & Company lifted their price target on shares of Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research note on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday. Wolfe Research lowered Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective for the company. in a research note on Monday, January 26th. Finally, Argus set a $696.00 target price on Cummins in a report on Tuesday, February 10th. Eleven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $649.47.

Insider Activity at Cummins

In related news, VP Jennifer Mary Bush sold 4,270 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the sale, the vice president directly owned 15,130 shares of the company's stock, valued at approximately $8,849,990.90. This trade represents a 22.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Nicole Lamb-Hale sold 2,408 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the sale, the chief accounting officer owned 14,084 shares in the company, valued at approximately $9,652,328.56. The trade was a 14.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 33,603 shares of company stock valued at $20,047,788 over the last three months. Corporate insiders own 0.30% of the company's stock.

Cummins 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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