Motley Fool Asset Management LLC Has $6.56 Million Stock Position in Cummins Inc. $CMI

Key Points

• Motley Fool Asset Management increased its Cummins stake by 35.2% in the fourth quarter, ending with 12,857 shares worth about $6.56 million.
• Insider selling continued recently, with CAO Nicole Lamb-Hale and insider Brett Michael Merritt both selling shares; insiders sold 13,579 shares total over the last 90 days.
• Analyst sentiment remains positive, with several firms raising price targets and Cummins carrying a consensus “Moderate Buy” rating and average target price of $726.14.

Motley Fool Asset Management LLC lifted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 35.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 12,857 shares of the company's stock after acquiring an additional 3,349 shares during the period. Motley Fool Asset Management LLC's holdings in Cummins were worth $6,563,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. Vanguard Group Inc. grew 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 last quarter. Geode Capital Management LLC grew 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 last quarter. Fisher Asset Management LLC grew 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 last quarter. Northwestern Mutual Wealth Management Co. grew 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 acquiring an additional 2,434,876 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Cummins in the fourth quarter worth $863,441,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity at Cummins

In other Cummins news, CAO Nicole Lamb-Hale sold 2,408 shares of Cummins stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total transaction of $1,650,298.72. Following the completion of the transaction, the chief accounting officer directly owned 14,084 shares of the company's stock, valued at approximately $9,652,328.56. This trade represents a 14.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brett Michael Merritt sold 701 shares of Cummins stock in a transaction on Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the transaction, the insider directly owned 10,404 shares of the company's stock, valued at approximately $7,165,755. The trade was a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 13,579 shares of company stock valued at $9,377,684. Insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on CMI. Wells Fargo & Company raised their target price on Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Argus raised their target price on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Finally, Evercore reaffirmed an "outperform" rating and issued a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and a consensus target price of $726.14.

Cummins Stock Down 0.6%

Shares of NYSE CMI opened at $668.73 on Wednesday. The stock has a market cap of $92.28 billion, a PE ratio of 34.70, a PEG ratio of 1.64 and a beta of 1.23. The business has a fifty day moving average of $641.50 and a two-hundred day moving average of $580.27. Cummins Inc. has a 52-week low of $307.90 and a 52-week high of $718.08. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. The company had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business's revenue was up 2.7% on a year-over-year basis. During the same period last year, the business earned $5.96 earnings per share. As a group, equities research analysts expect that Cummins Inc. will post 29.29 earnings per share for the current fiscal year.

Cummins Announces Dividend

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

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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