Royal Bank of Canada Sells 70,820 Shares of Cummins Inc. $CMI

Key Points

• Royal Bank of Canada trimmed its Cummins stake by 4.4% in the fourth quarter, selling 70,820 shares but still holding 1.55 million shares valued at about $791.9 million.
• Several analysts have turned more bullish on Cummins, with UBS upgrading the stock to buy and raising its price target to $850; the consensus rating remains Moderate Buy with a $726.14 target.
• Cummins reported better-than-expected quarterly results, posting EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, while also paying a $2.00 quarterly dividend.

Royal Bank of Canada lessened its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 4.4% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,551,364 shares of the company's stock after selling 70,820 shares during the period. Royal Bank of Canada owned about 1.12% of Cummins worth $791,893,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Nicolet Advisory Services LLC raised its holdings in Cummins by 1.6% during the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock worth $619,000 after acquiring an additional 17 shares in the last quarter. Frank Rimerman Advisors LLC raised its stake in Cummins by 0.5% in the fourth quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company's stock valued at $1,908,000 after buying an additional 18 shares during the period. Financial Consulate Inc. raised its stake in Cummins by 16.8% in the fourth quarter. Financial Consulate Inc. now owns 125 shares of the company's stock valued at $64,000 after buying an additional 18 shares during the period. ICW Investment Advisors LLC raised its stake 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 buying an additional 18 shares during the period. Finally, Gilbert & Cook Inc. raised its stake in Cummins by 1.0% in the fourth quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company's stock valued at $947,000 after buying an additional 19 shares during the period. Institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on CMI. Truist Financial set a $815.00 price objective on Cummins in a research note on Wednesday, May 6th. JPMorgan Chase & Co. increased their target price on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Wells Fargo & Company increased their target price on Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. UBS Group upgraded Cummins from a "neutral" rating to a "buy" rating and increased their target price for the stock from $565.00 to $850.00 in a research note on Monday, June 8th. Finally, Evercore reiterated an "outperform" rating and set a $845.00 target price on shares of Cummins in a research note on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and a consensus price target of $726.14.

Insider Buying and Selling at Cummins

In related news, VP Donald G. Jackson sold 730 shares of the 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 sale, the vice president owned 8,316 shares of the company's stock, valued at $5,912,010.72. This represents a 8.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Jennifer Mary Bush sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the sale, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This represents a 29.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,579 shares of company stock valued at $9,377,684 over the last ninety days. 0.30% of the stock is owned by corporate insiders.

Cummins Price Performance

Shares of NYSE CMI opened at $701.15 on Wednesday. The firm has a market cap of $96.75 billion, a P/E ratio of 36.39, a price-to-earnings-growth ratio of 1.66 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 Inc. has a 1-year low of $307.90 and a 1-year high of $718.08. The business's 50 day moving average is $654.05 and its 200-day moving average is $586.69.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The company had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the company earned $5.96 earnings per share. Equities research analysts predict that Cummins Inc. will post 29.29 earnings per share for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.1%. Cummins's dividend payout ratio is currently 41.52%.

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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