LPL Financial LLC Sells 39,749 Shares of Cummins Inc. $CMI

Key Points

• LPL Financial LLC trimmed its Cummins stake by 9.5% in the fourth quarter, selling 39,749 shares and leaving it with 377,839 shares valued at about $192.9 million.
• Cummins reported better-than-expected Q1 results, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly above forecasts; revenue rose 2.7% year over year.
• Analysts remain bullish overall, with several raising price targets and the consensus rating sitting at Moderate Buy with an average target of $726.14.

LPL Financial LLC decreased its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 9.5% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 377,839 shares of the company's stock after selling 39,749 shares during the period. LPL Financial LLC owned 0.27% of Cummins worth $192,868,000 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. Vanguard Group Inc. boosted 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 acquiring an additional 98,544 shares during the period. Geode Capital Management LLC boosted its stake in shares of Cummins by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after acquiring an additional 35,286 shares during the period. Fisher Asset Management LLC boosted 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 acquiring an additional 43,722 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in Cummins by 10,317.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after buying an additional 2,434,876 shares during the last quarter. Finally, Norges Bank bought a new position in Cummins during the fourth quarter valued at approximately $863,441,000. Institutional investors own 83.46% of the company's stock.

Cummins Price Performance

NYSE:CMI opened at $668.73 on Wednesday. The firm has a market capitalization of $92.28 billion, a price-to-earnings ratio of 34.70, a PEG ratio of 1.64 and a beta of 1.23. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $718.08. The business has a 50 day simple moving average of $641.50 and a 200-day simple moving average of $580.27. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52. The business 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%.The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period last year, the company earned $5.96 EPS. Equities analysts forecast that Cummins Inc. will post 29.29 EPS for the current year.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, May 22nd. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insider Transactions at Cummins

In other news, VP Jennifer Mary Bush sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the sale, the vice president directly owned 11,986 shares in the company, valued at approximately $8,344,773.06. This represents a 29.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Brett Michael Merritt sold 701 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the sale, the insider owned 10,404 shares in the company, valued at approximately $7,165,755. The trade was a 6.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 13,579 shares of company stock valued at $9,377,684. Company insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on CMI shares. UBS Group raised Cummins from a "neutral" rating to a "buy" rating and increased their price target for the company from $565.00 to $850.00 in a research note on Monday. Citigroup increased their price target on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Morgan Stanley increased their price target on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Finally, Barclays increased their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $726.14.

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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