Robeco Institutional Asset Management B.V. Buys 17,304 Shares of Cummins Inc. $CMI

Key Points

• Robeco Institutional Asset Management increased its stake in Cummins by 6.0% in Q4, buying 17,304 shares to hold 307,416 shares (about 0.22% of the company) valued at roughly $156.92 million.
• Cummins beat expectations for the quarter, reporting EPS of $5.81 versus $5.17 expected and revenue of $8.54 billion versus $8.09 billion, with a market cap of $85.08 billion and a P/E of 30.01.
• Notable insider activity: insiders sold 31,195 shares (~$18.4 million) in the last 90 days, including a director sale of 18,107 shares; the company pays a $2.00 quarterly dividend (annualized $8.00, yield 1.3%) and institutional ownership is 83.46%.

Robeco Institutional Asset Management B.V. boosted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 6.0% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 307,416 shares of the company's stock after purchasing an additional 17,304 shares during the quarter. Robeco Institutional Asset Management B.V. owned about 0.22% of Cummins worth $156,920,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Thompson Investment Management Inc. bought a new stake in Cummins during the fourth quarter worth approximately $26,000. Holos Integrated Wealth LLC bought a new stake in Cummins during the fourth quarter worth approximately $32,000. Flagship Wealth Advisors LLC bought a new stake in Cummins during the third quarter worth approximately $28,000. Olistico Wealth LLC bought a new stake in Cummins during the fourth quarter worth approximately $39,000. Finally, Salomon & Ludwin LLC boosted its position in Cummins by 1,333.3% during the third quarter. Salomon & Ludwin LLC now owns 86 shares of the company's stock worth $37,000 after purchasing an additional 80 shares during the period. Institutional investors own 83.46% of the company's stock.

Cummins Stock Up 0.8%

CMI opened at $615.80 on Friday. Cummins Inc. has a 1-year low of $269.24 and a 1-year high of $620.78. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $85.08 billion, a price-to-earnings ratio of 30.01, a P/E/G ratio of 1.95 and a beta of 1.14. The business has a 50 day moving average of $568.28 and a 200-day moving average of $516.15.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating the consensus estimate of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The company had revenue of $8.54 billion during the quarter, compared to analysts' expectations of $8.09 billion. During the same period in the prior year, the business earned $5.16 earnings per share. Cummins's revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were given a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, February 20th. Cummins's dividend payout ratio is currently 38.99%.

Insider Buying and Selling

In related news, Director William I. Miller sold 18,107 shares of the firm's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total value of $10,811,689.70. Following the completion of the transaction, the director directly owned 34,243 shares of the company's stock, valued at $20,446,495.30. This trade represents a 34.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Jennifer Mary Bush sold 4,270 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total value of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares of the company's stock, valued at approximately $8,849,990.90. This trade represents a 22.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 31,195 shares of company stock valued at $18,397,489 in the last ninety days. Company insiders own 0.41% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CMI. Truist Financial reaffirmed a "buy" rating and set a $703.00 target price (up from $653.00) on shares of Cummins in a research report on Friday, February 6th. Robert W. Baird set a $580.00 target price on Cummins in a research report on Friday, February 6th. Wolfe Research cut Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price for the company. in a research report on Monday, January 26th. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, January 28th. Finally, Barclays upped their target price on Cummins from $546.00 to $610.00 and gave the stock an "overweight" rating in a research report on Friday, January 23rd. Eleven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and a consensus price target of $588.93.

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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