Oddo BHF Asset Management Sas Makes New $2.08 Million Investment in Cummins Inc. $CMI

Key Points

• Oddo BHF Asset Management purchased 3,866 Cummins shares worth approximately $2.08 million, joining significant institutional buying that leaves funds and hedge funds owning 83.46% of the stock.
• Analysts maintain a positive outlook, with 11 Buy ratings and four Holds. Cummins has a consensus “Moderate Buy” rating and an average price target of $740.07.
• Cummins exceeded quarterly earnings expectations with $6.15 in EPS and $8.40 billion in revenue, while raising its quarterly dividend from $2.00 to $2.20 per share. Shares opened at $633.15, and insiders sold approximately $9.38 million of stock over the past three months.

Oddo BHF Asset Management Sas purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 3,866 shares of the company's stock, valued at approximately $2,080,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in CMI. Northwestern Mutual Wealth Management Co. grew its position in 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 valued at $1,254,929,000 after purchasing an additional 2,434,876 shares in the last quarter. Norges Bank bought a new stake in Cummins during the 4th quarter worth about $863,441,000. Boston Partners bought a new stake in Cummins during the 3rd quarter worth about $473,471,000. SG Americas Securities LLC boosted its stake in shares of Cummins by 257.9% during the 1st quarter. SG Americas Securities LLC now owns 736,670 shares of the company's stock worth $396,343,000 after buying an additional 530,812 shares during the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of Cummins by 245.1% during the 4th quarter. First Trust Advisors LP now owns 542,796 shares of the company's stock worth $277,071,000 after buying an additional 385,525 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

CMI has been the topic of a number of recent research reports. JPMorgan Chase & Co. lifted their target price on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Wells Fargo & Company increased their price target on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Raymond James Financial raised their price target on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research note on Tuesday, May 26th. Truist Financial boosted their price target on Cummins from $815.00 to $901.00 and gave the stock a "buy" rating in a research report on Thursday, July 2nd. Finally, Evercore reiterated an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, Cummins has a consensus rating of "Moderate Buy" and an average price target of $740.07.

Cummins Trading Up 4.5%

Shares of NYSE:CMI opened at $633.15 on Friday. Cummins Inc. has a 52-week low of $354.68 and a 52-week high of $737.76. The company has a market capitalization of $87.37 billion, a P/E ratio of 32.86, a price-to-earnings-growth ratio of 1.48 and a beta of 1.22. The company has a 50-day simple moving average of $670.20 and a 200 day simple moving average of $622.43. 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 posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The business 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%.Cummins's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the company posted $5.96 earnings per share. Sell-side analysts forecast that Cummins Inc. will post 29.39 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. The ex-dividend date is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is presently 41.52%.

Insider Buying and Selling at Cummins

In related news, VP Donald G. Jackson sold 730 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the transaction, the vice president directly owned 8,316 shares of the company's stock, valued at approximately $5,912,010.72. The trade was a 8.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Marvin Boakye sold 3,481 shares of the firm's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the sale, the vice president directly owned 8,508 shares of the company's stock, valued at $5,784,589.20. This represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 13,579 shares of company stock worth $9,377,684 in the last three months. 0.30% of the stock is owned by insiders.

About Cummins

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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