Royce & Associates LP Reduces Holdings in Cummins Inc. $CMI

Key Points

• Royce & Associates LP cut its Cummins stake by 45% in the fourth quarter, selling 4,500 shares and ending with 5,500 shares valued at about $2.8 million.
• Several Cummins executives sold stock recently, including VP Donald G. Jackson and VP Jennifer Mary Bush; insiders sold 17,633 shares worth about $11.65 million over the last three months.
• Cummins beat quarterly earnings expectations, reporting $6.15 EPS on $8.40 billion in revenue, while analysts maintain a Moderate Buy consensus with an average target price of $700.50.

Royce & Associates LP decreased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 45.0% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 5,500 shares of the company's stock after selling 4,500 shares during the period. Royce & Associates LP's holdings in Cummins were worth $2,807,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the business. Frank Rimerman Advisors LLC grew its stake in shares of Cummins by 0.5% during the fourth quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company's stock worth $1,908,000 after acquiring an additional 18 shares during the last quarter. Financial Consulate Inc. grew its stake in shares of Cummins by 16.8% during the fourth quarter. Financial Consulate Inc. now owns 125 shares of the company's stock worth $64,000 after acquiring an additional 18 shares during the last quarter. Gilbert & Cook Inc. grew its stake in shares of Cummins by 1.0% during the fourth quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company's stock worth $947,000 after acquiring an additional 19 shares during the last quarter. Sound View Wealth Advisors Group LLC grew its stake in shares of Cummins by 2.1% during the fourth quarter. Sound View Wealth Advisors Group LLC now owns 981 shares of the company's stock worth $501,000 after acquiring an additional 20 shares during the last quarter. Finally, Red Door Wealth Management LLC grew its stake in shares of Cummins by 2.3% during the fourth quarter. Red Door Wealth Management LLC now owns 878 shares of the company's stock worth $448,000 after acquiring an additional 20 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Buying and Selling

In other Cummins 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 value of $518,971.60. Following the completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the transaction, the vice president directly owned 11,986 shares of the company's stock, valued at $8,344,773.06. The trade was a 29.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 17,633 shares of company stock valued at $11,653,357 in the last three months. 0.30% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

CMI has been the topic of a number of recent research reports. Raymond James Financial upped their target price on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research report on Tuesday. Truist Financial set a $815.00 target price on Cummins in a research report on Wednesday, May 6th. Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Citigroup upped their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, UBS Group set a $565.00 target price on Cummins and gave the company a "neutral" rating in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $700.50.

Cummins Price Performance

Shares of NYSE CMI opened at $646.53 on Friday. Cummins Inc. has a 52 week low of $307.90 and a 52 week high of $718.08. The firm has a market cap of $89.22 billion, a P/E ratio of 33.55, a P/E/G ratio of 1.57 and a beta of 1.27. The business's 50 day moving average price is $623.70 and its 200 day moving average price is $569.87. The company has a quick ratio of 1.11, a current ratio of 1.71 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 analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the previous year, the company posted $5.96 earnings per share. Cummins's revenue for the quarter was up 2.7% on a year-over-year basis. On average, sell-side analysts expect that Cummins Inc. will post 29.4 earnings per share for the current year.

Cummins Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be issued a $2.00 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's payout ratio is presently 41.52%.

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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