National Bank of Canada FI Grows Stock Holdings in Cummins Inc. (NYSE:CMI)

Key Points

• National Bank of Canada FI increased its stake in Cummins Inc. (NYSE:CMI) by 44.3%, owning approximately 117,343 shares valued at around $36.78 million at the end of the last reporting period.
• Hedge fund activity has ramped up, with over 83% of Cummins' stock now owned by institutional investors, including notable acquisitions by firms like Brighton Jones LLC and Federated Hermes Inc.
• Cummins has received a series of analyst upgrades, with Goldman Sachs raising its price target from $410 to $431, reflecting a generally positive outlook amid recent earnings reports showing earnings per share well above expectations.

National Bank of Canada FI raised its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 44.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 117,343 shares of the company's stock after buying an additional 35,999 shares during the quarter. National Bank of Canada FI owned about 0.09% of Cummins worth $36,784,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of CMI. Brighton Jones LLC increased its holdings in shares of Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after acquiring an additional 83 shares in the last quarter. Federated Hermes Inc. increased its holdings in shares of Cummins by 3.0% during the fourth quarter. Federated Hermes Inc. now owns 13,887 shares of the company's stock valued at $4,841,000 after acquiring an additional 403 shares in the last quarter. CenterBook Partners LP acquired a new position in shares of Cummins during the fourth quarter valued at about $472,000. Bessemer Group Inc. increased its holdings in shares of Cummins by 0.7% during the fourth quarter. Bessemer Group Inc. now owns 14,666 shares of the company's stock valued at $5,112,000 after acquiring an additional 101 shares in the last quarter. Finally, Legacy Financial Advisors Inc. acquired a new position in shares of Cummins during the fourth quarter valued at about $219,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on CMI shares. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and upped their price objective for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Morgan Stanley upped their target price on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Robert W. Baird upped their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Truist Financial upped their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday. Finally, Citigroup upped their target price on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, Cummins presently has a consensus rating of "Hold" and a consensus price target of $370.83.

Insider Activity at Cummins

In other Cummins news, Director John H. Stone acquired 1,000 shares of the business's stock in a transaction dated Friday, May 16th. The stock was acquired at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the transaction, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. This represents a 69.40% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.41% of the stock is owned by company insiders.

Cummins Trading Up 0.8%

Shares of NYSE:CMI opened at $387.57 on Friday. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $391.56. The company has a market capitalization of $53.40 billion, a PE ratio of 18.22, a PEG ratio of 1.91 and a beta of 1.02. The business has a 50 day moving average of $339.84 and a two-hundred day moving average of $331.47. The company has a current ratio of 1.64, a quick ratio of 0.81 and a debt-to-equity ratio of 0.53.

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

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders 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 dividend yield of 2.1%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is presently 34.23%.

Cummins 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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