Lansforsakringar Fondforvaltning AB publ Reduces Stock Position in Cummins Inc. $CMI

Key Points

• Lansforsakringar Fondforvaltning AB publ reduced its stake in Cummins Inc. by 4.4%, now holding shares worth approximately $16.99 million.
• Wall Street analysts have upgraded Cummins' rating, with price targets increased to as high as $431.00 by some firms, indicating a positive outlook for the stock.
• Cummins recently announced a quarterly dividend of $2.00 per share, up from the previous $1.82, reflecting a 2.0% dividend yield.

Lansforsakringar Fondforvaltning AB publ lessened its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 4.4% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 54,200 shares of the company's stock after selling 2,514 shares during the quarter. Lansforsakringar Fondforvaltning AB publ's holdings in Cummins were worth $16,988,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of CMI. GAMMA Investing LLC grew its stake in shares of Cummins by 38,220.5% during the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock worth $373,428,000 after buying an additional 1,188,276 shares during the last quarter. Raymond James Financial Inc. lifted its holdings in shares of Cummins by 152.3% during the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after purchasing an additional 817,384 shares during the period. Nuveen LLC acquired a new position in shares of Cummins during the first quarter worth $109,120,000. Vanguard Group Inc. lifted its holdings in shares of Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after purchasing an additional 321,823 shares during the period. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of Cummins by 5,553.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock worth $46,731,000 after purchasing an additional 131,681 shares during the period. Institutional investors own 83.46% of the company's stock.

Cummins Stock Down 0.9%

Shares of NYSE:CMI traded down $3.67 during midday trading on Tuesday, hitting $394.77. 353,249 shares of the company's stock were exchanged, compared to its average volume of 871,703. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The stock has a 50 day moving average price of $364.99 and a 200-day moving average price of $335.23. The company has a market cap of $54.39 billion, a PE ratio of 18.56, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same period in the prior year, the firm posted $5.26 EPS. The firm's quarterly revenue was down 1.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 37.61%.

Analyst Ratings Changes

A number of equities analysts have recently commented on CMI shares. Robert W. Baird lifted their price target on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Morgan Stanley boosted their target price on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Barclays boosted their target price on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Finally, Evercore ISI restated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Seven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $370.83.

Insiders Place Their Bets

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, the vice president directly owned 7,693 shares in the company, valued at $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the business's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the completion of the transaction, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 26,039 shares of company stock worth $10,385,075 in the last ninety days. 0.41% of the stock is owned by corporate insiders.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.