Geode Capital Management LLC Acquires 35,286 Shares of Cummins Inc. $CMI

Key Points

• Geode Capital Management increased its Cummins stake by 1.0% in the fourth quarter, buying 35,286 shares and ending with 3.58 million shares valued at about $1.82 billion.
• Analysts remain broadly positive on Cummins, with several firms raising price targets; the stock now carries a Moderate Buy consensus and an average target price of $700.50.
• Cummins reported solid quarterly results, including EPS of $6.15 versus expectations of $5.63, and it also announced a $2.00 quarterly dividend payable June 4.

Geode Capital Management LLC lifted its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 1.0% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,584,466 shares of the company's stock after acquiring an additional 35,286 shares during the period. Geode Capital Management LLC owned 2.60% of Cummins worth $1,822,534,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the business. ICW Investment Advisors LLC boosted its stake in shares of Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after acquiring an additional 18 shares during the period. Expressive Wealth LLC bought a new position in shares of Cummins in the fourth quarter worth about $658,000. Williamson Legacy Group LLC bought a new position in shares of Cummins in the fourth quarter worth about $712,000. TrustBank bought a new position in shares of Cummins in the fourth quarter worth about $375,000. Finally, Flputnam Investment Management Co. boosted its stake in shares of Cummins by 1.8% in the fourth quarter. Flputnam Investment Management Co. now owns 8,702 shares of the company's stock worth $4,442,000 after acquiring an additional 153 shares during the period. Institutional investors own 83.46% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Raymond James Financial upped their price objective on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday. JPMorgan Chase & Co. boosted their target price on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Argus set a $696.00 target price on Cummins in a research report on Tuesday, February 10th. Wall Street Zen downgraded Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Finally, Barclays boosted their target price on Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus target price of $700.50.

Insider Buying and Selling at Cummins

In other Cummins news, VP Jennifer Mary Bush sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the sale, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This represents a 29.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the sale, the vice president owned 8,316 shares in the company, valued at approximately $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 17,633 shares of company stock valued at $11,653,357. Corporate insiders own 0.30% of the company's stock.

Cummins Price Performance

NYSE:CMI opened at $667.47 on Friday. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The business's 50-day moving average is $621.63 and its 200 day moving average is $569.33. The company has a market capitalization of $92.10 billion, a P/E ratio of 34.64, a P/E/G ratio of 1.63 and a beta of 1.27.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the prior year, the business posted $5.96 earnings per share. The company's quarterly revenue was up 2.7% compared to the same quarter last year. On average, equities research analysts forecast that Cummins Inc. will post 29.4 earnings per share for the current fiscal year.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be given a dividend of $2.00 per share. The ex-dividend date is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's dividend payout ratio is 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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