Nykredit A S Invests $40.39 Million in Cummins Inc. $CMI

Key Points

• Nykredit A/S purchased 56,636 Cummins shares in the second quarter, worth approximately $40.39 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly EPS of $6.73, below the $7.21 consensus estimate, while revenue rose 9.4% year over year to $9.46 billion.
• The company increased its quarterly dividend from $2.00 to $2.20 per share, and analysts maintained a “Moderate Buy” consensus with an average price target of $750.75.

Nykredit A S purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 56,636 shares of the company's stock, valued at approximately $40,393,000.

Several other institutional investors have also recently made changes to their positions in the company. Valmark Advisers Inc. grew its holdings in shares of Cummins by 1.9% in the first quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock valued at $472,000 after purchasing an additional 16 shares in the last quarter. Guardian Partners Inc. grew its stake in Cummins by 1.0% during the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock worth $852,000 after purchasing an additional 16 shares in the last quarter. Nicolet Advisory Services LLC raised its holdings in shares of Cummins by 1.6% in the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after purchasing an additional 17 shares in the last quarter. Uhlmann Price Securities LLC raised its holdings in Cummins by 2.4% during the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after purchasing an additional 17 shares in the last quarter. Finally, ICW Investment Advisors LLC lifted its position in Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock valued at $369,000 after acquiring an additional 18 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Up 1.6%

NYSE:CMI opened at $532.05 on Friday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The company has a market capitalization of $73.24 billion, a price-to-earnings ratio of 27.19, a price-to-earnings-growth ratio of 1.42 and a beta of 1.23. Cummins Inc. has a one year low of $400.72 and a one year high of $737.76. The stock has a 50-day simple moving average of $605.84 and a 200 day simple moving average of $623.10.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The firm had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business's revenue was up 9.4% compared to the same quarter last year. During the same period last year, the firm posted $6.43 EPS. Sell-side analysts predict that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were given a dividend of $2.20 per share. The ex-dividend date of this dividend was Friday, August 21st. This is a boost from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.7%. Cummins's payout ratio is presently 44.97%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Morgan Stanley raised their price target on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Evercore dropped their target price on shares of Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. Wells Fargo & Company upped their price target on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. Citigroup increased their price target on shares of Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, DA Davidson lifted their price objective on Cummins from $605.00 to $750.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Thirteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $750.75.

Insiders Place Their Bets

In related news, VP Earl Newsome sold 698 shares of Cummins 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 owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.30% of the company's stock.

Cummins Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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