Mather Group LLC. Purchases 23,314 Shares of Cummins Inc. $CMI

Key Points

• Mather Group increased its Cummins stake by 702.9% in the third quarter, purchasing 23,314 additional shares for a total holding valued at approximately $13.76 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive view, with 13 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $708.18. However, several firms recently lowered their targets.
• Cummins shares opened at $525.39, down 0.7%, while the company’s latest earnings missed expectations despite 9.4% year-over-year revenue growth. Cummins also declared a quarterly dividend of $2.20 per share, equal to a 1.7% annualized yield.

Mather Group LLC. increased its position in Cummins Inc. (NYSE:CMI - Free Report) by 702.9% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 26,631 shares of the company's stock after acquiring an additional 23,314 shares during the period. Mather Group LLC.'s holdings in Cummins were worth $13,757,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. BlackRock Inc. bought a new position in Cummins in the 2nd quarter worth about $8,204,241,000. Bank of America Corp DE acquired a new stake in shares of Cummins in the second quarter valued at approximately $1,408,353,000. Bank of New York Mellon Corp bought a new stake in shares of Cummins during the second quarter valued at approximately $973,198,000. Legal & General Group Plc bought a new stake in shares of Cummins during the second quarter valued at approximately $666,635,000. Finally, SG Americas Securities LLC raised its holdings in shares of Cummins by 257.9% during the first quarter. SG Americas Securities LLC now owns 736,670 shares of the company's stock valued at $396,343,000 after buying an additional 530,812 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on CMI shares. Bank of America decreased their price objective on Cummins from $731.00 to $600.00 in a report on Thursday, September 24th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Wells Fargo & Company reduced their price target on Cummins from $874.00 to $760.00 and set an "overweight" rating for the company in a research report on Thursday, October 8th. Citigroup decreased their price target on Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a research note on Monday. Finally, UBS Group decreased their price target on Cummins from $835.00 to $741.00 and set a "buy" rating for the company in a research note on Wednesday, September 30th. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Cummins has a consensus rating of "Moderate Buy" and a consensus target price of $708.18.

Cummins Stock Down 0.7%

NYSE CMI opened at $525.39 on Thursday. Cummins Inc. has a 12 month low of $405.82 and a 12 month high of $737.76. The company has a market capitalization of $72.33 billion, a P/E ratio of 26.85, a PEG ratio of 1.39 and a beta of 1.24. The company's 50 day simple moving average is $560.36 and its 200 day simple moving average is $620.42. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company's quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $6.43 earnings per share. Equities research analysts expect that Cummins Inc. will post 30.10 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, December 3rd. Stockholders of record on Friday, November 20th will be given a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, November 20th. Cummins's dividend payout ratio is 44.97%.

Insider Activity at Cummins

In other news, VP Earl Newsome sold 698 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the sale, the vice president directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.30% of the company's stock.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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