Sumitomo Mitsui Trust Group Inc. Decreases Holdings in Cummins Inc. $CMI

Key Points

• Sumitomo Mitsui Trust Group cut its Cummins stake by 2.9% in Q4, selling 10,740 shares and retaining 361,586 shares (≈0.26% of the company) worth about $184.6 million.
• Other institutions were net buyers: Boston Partners and London Co. opened large positions while BNY Mellon (+50.8%) and Nordea (+103.8%) materially increased holdings, leaving institutional ownership at roughly 83.46%.
• Cummins beat Q4 estimates (EPS $5.81 vs $5.17; revenue $8.54B vs $8.09B), trades near its 52‑week high with a market cap of ~$85.1B and an average analyst target of ~$588.93, and pays an $8.00 annual dividend (yield ~1.3%); insiders sold ~31,195 shares (~$18.4M) last quarter.

Sumitomo Mitsui Trust Group Inc. cut its stake in Cummins Inc. (NYSE:CMI - Free Report) by 2.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 361,586 shares of the company's stock after selling 10,740 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.26% of Cummins worth $184,572,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently bought and sold shares of the company. Boston Partners bought a new stake in shares of Cummins in the 3rd quarter worth about $473,471,000. London Co. of Virginia bought a new position in Cummins in the 3rd quarter worth about $231,732,000. Bank of New York Mellon Corp grew its stake in Cummins by 50.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock worth $612,715,000 after acquiring an additional 488,430 shares in the last quarter. Nordea Investment Management AB boosted its stake in shares of Cummins by 103.8% during the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock valued at $280,397,000 after purchasing an additional 278,350 shares in the last quarter. Finally, Merewether Investment Management LP bought a new position in shares of Cummins during the third quarter valued at approximately $91,147,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Down 0.1%

Shares of NYSE CMI opened at $615.80 on Monday. The company's 50-day simple moving average is $568.28 and its 200-day simple moving average is $516.84. Cummins Inc. has a 52-week low of $269.24 and a 52-week high of $620.78. The firm has a market cap of $85.08 billion, a price-to-earnings ratio of 30.01, a price-to-earnings-growth ratio of 1.95 and a beta of 1.14. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The business had revenue of $8.54 billion for the quarter, compared to analyst estimates of $8.09 billion. During the same quarter last year, the business earned $5.16 earnings per share. The company's revenue for the quarter was up 1.1% compared to the same quarter last year. Equities analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were paid 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 (DPR) is currently 38.99%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on CMI. JPMorgan Chase & Co. increased their price objective on shares of Cummins from $485.00 to $580.00 and gave the company a "neutral" rating in a research note on Wednesday, January 14th. UBS Group set a $565.00 price target on shares of Cummins and gave the stock a "neutral" rating in a report on Friday, February 6th. Barclays raised their price target on shares of Cummins from $546.00 to $610.00 and gave the stock an "overweight" rating in a report on Friday, January 23rd. Sanford C. Bernstein set a $600.00 target price on shares of Cummins and gave the stock a "market perform" rating in a report on Friday, February 6th. Finally, Wolfe Research cut shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price for the company. in a report on Monday, January 26th. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $588.93.

Insider Transactions at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total value of $2,275,672.36. Following the transaction, the vice president directly owned 15,807 shares of the company's stock, valued at approximately $8,873,101.38. This trade represents a 20.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Jennifer Mary Bush sold 4,270 shares of the firm's stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. This represents a 22.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 31,195 shares of company stock valued at $18,397,489. Company insiders own 0.30% of the company's stock.

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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