Morningstar Investment Management LLC Makes New Investment in Cummins Inc. $CMI

Key Points

• Morningstar Investment Management LLC has acquired 920 shares of Cummins Inc. valued at approximately $301,000 during Q2, indicating growing institutional interest in the company.
• Insider transactions include the sale of 5,002 shares by VP Amy Rochelle Davis, representing a 19.43% decrease in her ownership, while director Karen H. Quintos also sold shares, reflecting ongoing insider activity.
• Wall Street analysts are optimistic, with Melius upgrading Cummins from "hold" to "buy" and setting a target price of $500, contributing to a general positive sentiment around the stock.

Morningstar Investment Management LLC bought a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 920 shares of the company's stock, valued at approximately $301,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Alpine Woods Capital Investors LLC grew its stake in shares of Cummins by 21.1% during the second quarter. Alpine Woods Capital Investors LLC now owns 15,103 shares of the company's stock worth $4,946,000 after buying an additional 2,629 shares during the last quarter. Cornerstone Wealth Group LLC grew its stake in shares of Cummins by 4.5% during the second quarter. Cornerstone Wealth Group LLC now owns 35,012 shares of the company's stock worth $11,466,000 after buying an additional 1,523 shares during the last quarter. NorthRock Partners LLC grew its stake in shares of Cummins by 34.2% during the second quarter. NorthRock Partners LLC now owns 1,290 shares of the company's stock worth $422,000 after buying an additional 329 shares during the last quarter. Verdence Capital Advisors LLC grew its stake in shares of Cummins by 13.5% during the second quarter. Verdence Capital Advisors LLC now owns 8,830 shares of the company's stock worth $2,892,000 after buying an additional 1,052 shares during the last quarter. Finally, Sequoia Financial Advisors LLC grew its stake in shares of Cummins by 1.2% during the second quarter. Sequoia Financial Advisors LLC now owns 4,028 shares of the company's stock worth $1,319,000 after buying an additional 49 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Insiders Place Their Bets

In related news, VP Amy Rochelle Davis sold 5,002 shares of the business's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares in the company, valued at $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Karen H. Quintos sold 1,307 shares of the business's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the transaction, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 43,119 shares of company stock valued at $17,674,285 over the last quarter. Company insiders own 0.41% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CMI. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Barclays lifted their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 8th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Cummins in a report on Tuesday. Finally, Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a report on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Cummins has an average rating of "Moderate Buy" and an average price target of $407.43.

Cummins Price Performance

CMI stock opened at $417.31 on Wednesday. The firm has a market cap of $57.50 billion, a price-to-earnings ratio of 19.62, a PEG ratio of 1.97 and a beta of 1.04. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $440.51. The company's fifty day simple moving average is $409.04 and its 200 day simple moving average is $350.83.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $5.26 earnings per share. On average, analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Company Profile

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.

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