Goldman Sachs Group Inc. Acquires 162,036 Shares of Cummins Inc. $CMI

Key Points

• Goldman Sachs increased its Cummins stake by 31.5% in the fourth quarter, adding 162,036 shares and bringing its total holding to 676,042 shares worth about $345.1 million.
• Analysts have turned more constructive on Cummins, with Zacks Research raising earnings estimates and upgrading the stock to Strong-Buy; the broader consensus rating remains Moderate Buy with a target price of $705.79.
• Cummins reported stronger-than-expected quarterly results, posting EPS of $6.15 on revenue of $8.40 billion, while also paying a $2.00 quarterly dividend that implies an annualized yield of 1.2%.

Goldman Sachs Group Inc. raised its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 31.5% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 676,042 shares of the company's stock after acquiring an additional 162,036 shares during the quarter. Goldman Sachs Group Inc. owned approximately 0.49% of Cummins worth $345,086,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of CMI. Frank Rimerman Advisors LLC grew its position in Cummins by 0.5% in the fourth quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company's stock worth $1,908,000 after acquiring an additional 18 shares in the last quarter. Financial Consulate Inc. grew its position in Cummins by 16.8% in the fourth quarter. Financial Consulate Inc. now owns 125 shares of the company's stock worth $64,000 after acquiring an additional 18 shares in the last quarter. ICW Investment Advisors LLC grew its position in 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 in the last quarter. Gilbert & Cook Inc. grew its position in Cummins by 1.0% in the fourth quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company's stock worth $947,000 after acquiring an additional 19 shares in the last quarter. Finally, Sound View Wealth Advisors Group LLC grew its position in Cummins by 2.1% in the fourth quarter. Sound View Wealth Advisors Group LLC now owns 981 shares of the company's stock worth $501,000 after acquiring an additional 20 shares in the last quarter. 83.46% of the stock is owned by institutional investors.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research lifted its earnings estimates for Cummins across several upcoming quarters and full years, including FY2027 and FY2028, reinforcing a more bullish profit outlook.
• Positive Sentiment: The analyst firm maintained a Strong-Buy rating, suggesting confidence that Cummins can continue outperforming expectations.
• Positive Sentiment: Recent commentary on Cummins’ raised revenue guidance adds to the case that business trends remain favorable. Why Is Cummins Raising Revenue Guidance Amid NYSE Composite Focus?
• Neutral Sentiment: A separate note questioned whether the stock can rebound after its last earnings report, but it did not introduce new fundamental concerns. Cummins (CMI) Down 4.7% Since Last Earnings Report: Can It Rebound?

Wall Street Analysts Forecast Growth

Several research analysts recently commented on CMI shares. JPMorgan Chase & Co. lifted their price target on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. UBS Group set a $565.00 price target on Cummins and gave the stock a "neutral" rating in a research report on Friday, February 6th. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Wells Fargo & Company lifted their price target on Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. One 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 company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $705.79.

Cummins Stock Down 3.9%

Shares of NYSE:CMI opened at $651.38 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The firm has a market capitalization of $89.88 billion, a PE ratio of 33.80, a price-to-earnings-growth ratio of 1.66 and a beta of 1.23. The business has a 50 day simple moving average of $635.72 and a two-hundred day simple moving average of $576.59. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results 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. The firm had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.Cummins's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $5.96 earnings per share. On average, equities analysts predict that Cummins Inc. will post 29.29 EPS for the current year.

Cummins Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were issued a $2.00 dividend. The ex-dividend date was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. Cummins's payout ratio is presently 41.52%.

Insider Transactions at Cummins

In related news, VP Nathan R. Stoner sold 607 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $694.06, for a total value of $421,294.42. Following the completion of the sale, the vice president owned 9,447 shares in the company, valued at approximately $6,556,784.82. The trade was a 6.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the sale, the vice president owned 11,986 shares of the company's stock, valued at $8,344,773.06. The trade was a 29.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,579 shares of company stock valued at $9,377,684 in the last ninety days. Corporate insiders own 0.30% of the company's stock.

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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