OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC Takes $1.53 Million Position in Cummins Inc. $CMI

Key Points

• OCONNOR, a distinct UBS Asset Management unit, disclosed a new position in Cummins, buying 3,000 shares valued at about $1.53 million.
• Cummins reported strong quarterly results, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly above expectations; revenue also rose 2.7% year over year.
• The company remains broadly supported by Wall Street, with analysts maintaining a Moderate Buy consensus and an average target price of about $726.14, while Cummins also paid a $2.00 quarterly dividend for a 1.2% yield.

OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 3,000 shares of the company's stock, valued at approximately $1,531,000.

A number of other large investors have also bought and sold shares of the business. Nicolet Advisory Services LLC raised its holdings in Cummins by 1.6% during the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock worth $619,000 after buying an additional 17 shares during the period. Frank Rimerman Advisors LLC raised its holdings in Cummins by 0.5% during the 4th quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company's stock worth $1,908,000 after buying an additional 18 shares during the period. Financial Consulate Inc. raised its holdings in Cummins by 16.8% during the 4th quarter. Financial Consulate Inc. now owns 125 shares of the company's stock worth $64,000 after buying an additional 18 shares during the period. ICW Investment Advisors LLC raised its holdings in Cummins by 2.6% during the 4th quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after buying an additional 18 shares during the period. Finally, Gilbert & Cook Inc. raised its holdings in Cummins by 1.0% during the 4th quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company's stock worth $947,000 after buying an additional 19 shares during the period. 83.46% of the stock is owned by institutional investors.

Cummins Trading Up 3.0%

NYSE CMI opened at $679.66 on Tuesday. The stock has a 50 day moving average of $651.02 and a 200-day moving average of $585.26. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08. The company has a market cap of $93.79 billion, a PE ratio of 35.27, a PEG ratio of 1.61 and a beta of 1.24. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50.

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

Cummins Dividend Announcement

The firm also recently declared 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 annualized dividend and a yield of 1.2%. Cummins's dividend payout ratio (DPR) is currently 41.52%.

Insider Activity

In other Cummins news, VP Marvin Boakye sold 3,481 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the transaction, the vice president owned 8,508 shares in the company, valued at $5,784,589.20. This trade represents a 29.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Brett Michael Merritt sold 701 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the transaction, the insider owned 10,404 shares in the company, valued at $7,165,755. The trade was a 6.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 13,579 shares of company stock worth $9,377,684. Corporate insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Evercore restated an "outperform" rating and set a $845.00 target price on shares of Cummins in a report on Monday, May 11th. Argus raised their target price on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. Weiss Ratings downgraded shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Barclays raised their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. raised their target price on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, Cummins has an average rating of "Moderate Buy" and a consensus target price of $726.14.

Cummins 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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