Norges Bank Takes $863.44 Million Position in Cummins Inc. $CMI

Key Points

• Norges Bank disclosed a new position in Cummins, buying 1,691,530 shares worth about $863.4 million in the fourth quarter. The stake represented roughly 1.23% of Cummins at the end of the reporting period.
• Cummins reported strong quarterly results, with EPS of $6.15 beating expectations and revenue of $8.40 billion slightly above forecasts. Revenue rose 2.7% year over year, and analysts expect full-year EPS of 29.4.
• The company also announced a quarterly dividend of $2.00 per share, or $8.00 annually, implying a 1.2% yield. Meanwhile, several analysts remain positive, with the stock carrying a Moderate Buy consensus and an average price target of $700.50.

Norges Bank acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 1,691,530 shares of the company's stock, valued at approximately $863,441,000. Norges Bank owned approximately 1.23% of Cummins at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of CMI. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Cummins by 10,317.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after acquiring an additional 2,434,876 shares in the last quarter. Boston Partners bought a new position in shares of Cummins in the 3rd quarter valued at about $473,471,000. London Co. of Virginia bought a new position in shares of Cummins in the 3rd quarter valued at about $231,732,000. Nordea Investment Management AB grew its holdings in shares of Cummins by 103.8% in the 4th quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock valued at $280,397,000 after acquiring an additional 278,350 shares in the last quarter. Finally, Merewether Investment Management LP bought a new position in shares of Cummins in the 3rd quarter valued at about $91,147,000. Institutional investors own 83.46% of the company's stock.

Cummins Trading Down 3.3%

Shares of NYSE:CMI opened at $646.53 on Friday. Cummins Inc. has a 12-month low of $307.90 and a 12-month high of $718.08. The stock has a market cap of $89.22 billion, a PE ratio of 33.55, a P/E/G ratio of 1.57 and a beta of 1.27. The business has a 50 day moving average of $623.70 and a 200-day moving average of $569.87. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

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, topping analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter in the previous year, the company posted $5.96 earnings per share. The business's revenue was up 2.7% on a year-over-year basis. As a group, equities research analysts forecast that Cummins Inc. will post 29.4 earnings per share for the current year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, May 22nd. Cummins's payout ratio is presently 41.52%.

Insider Buying and Selling

In other news, insider Brett Michael Merritt sold 701 shares of Cummins stock in a transaction that occurred 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 completion of the sale, the insider directly 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Jennifer Mary Bush sold 5,000 shares of Cummins stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president owned 11,986 shares of the company's stock, valued at approximately $8,344,773.06. The trade was a 29.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 17,633 shares of company stock valued at $11,653,357 in the last quarter. Corporate insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on CMI shares. Argus set a $696.00 price target on Cummins in a report on Tuesday, February 10th. Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a report on Friday, May 22nd. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Robert W. Baird set a $700.00 price target on Cummins in a report on Wednesday, May 6th. Finally, Barclays boosted their price objective on Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $700.50.

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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