King Luther Capital Management Corp Has $8.95 Million Stock Holdings in Cummins Inc. $CMI

Key Points

• King Luther Capital Management reduced its Cummins stake by 8.5% in the fourth quarter, selling 1,627 shares and ending with 17,532 shares valued at about $8.95 million.
• Cummins beat earnings expectations in its latest quarter, reporting EPS of $6.15 versus the $5.63 consensus, while revenue of $8.40 billion also slightly topped estimates and rose 2.7% year over year.
• Analysts remain generally constructive on the stock, with a Moderate Buy consensus and an average price target of $700.50, even as several Cummins insiders recently sold shares.

King Luther Capital Management Corp cut its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 8.5% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 17,532 shares of the company's stock after selling 1,627 shares during the quarter. King Luther Capital Management Corp's holdings in Cummins were worth $8,949,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of Cummins by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after buying an additional 98,544 shares during the last quarter. Fisher Asset Management LLC lifted its stake in shares of Cummins by 1.3% in the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after buying an additional 43,722 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Cummins by 10,317.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after buying an additional 2,434,876 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Cummins by 0.5% in the third quarter. Dimensional Fund Advisors LP now owns 1,537,347 shares of the company's stock worth $649,280,000 after buying an additional 7,372 shares during the last quarter. Finally, Raymond James Financial Inc. lifted its stake in shares of Cummins by 4.5% in the third quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company's stock worth $640,090,000 after buying an additional 64,822 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have recently weighed in on CMI shares. UBS Group set a $565.00 price objective on shares of Cummins and gave the stock a "neutral" rating in a research note on Friday, February 6th. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. Evercore restated an "outperform" rating and issued a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. Robert W. Baird set a $700.00 price objective on shares of Cummins in a research note on Wednesday, May 6th. Finally, Truist Financial set a $815.00 price objective on shares of Cummins in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $700.50.

Cummins Trading Down 0.3%

Shares of CMI stock opened at $667.05 on Thursday. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $718.08. The firm's fifty day simple moving average is $619.15 and its 200 day simple moving average is $567.96. The firm has a market capitalization of $92.05 billion, a P/E ratio of 34.62, a price-to-earnings-growth ratio of 1.66 and a beta of 1.27. 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 (NYSE:CMI - Get Free Report) last announced 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. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. During the same quarter in the previous year, the firm posted $5.96 earnings per share. Cummins's revenue was up 2.7% compared to the same quarter last year. As a group, sell-side analysts predict that Cummins Inc. will post 28.93 EPS for the current year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Friday, May 22nd will be given a dividend of $2.00 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's payout ratio is 41.52%.

Insider Buying and Selling at Cummins

In other Cummins news, VP Marvin Boakye sold 3,481 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the sale, the vice president owned 8,508 shares of the company's stock, valued at $5,784,589.20. The trade was a 29.03% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This trade represents a 29.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 17,633 shares of company stock valued at $11,653,357 in the last three months. 0.30% of the stock is owned by insiders.

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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