Temasek Holdings Private Ltd Acquires New Position in Cummins Inc. $CMI

Key Points

• Temasek Holdings opened a new position in Cummins during the first quarter, buying 23,019 shares worth about $12.4 million.
• Cummins reported strong quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above expectations, while analysts remain broadly positive with a Moderate Buy rating and average target price of $740.07.
• The company also raised its quarterly dividend to $2.20 per share from $2.00, even as some executives sold shares and institutional ownership remains high at 83.46%.

Temasek Holdings Private Ltd bought a new position in Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to its most recent filing with the SEC. The firm bought 23,019 shares of the company's stock, valued at approximately $12,385,000.

Other large investors also recently bought and sold shares of the company. Bellwether Advisors LLC acquired a new position in Cummins during the 1st quarter valued at approximately $1,658,000. ABN Amro Investment Solutions lifted its stake in shares of Cummins by 13.5% during the first quarter. ABN Amro Investment Solutions now owns 6,336 shares of the company's stock worth $3,409,000 after buying an additional 756 shares during the period. PNC Financial Services Group Inc. grew its holdings in shares of Cummins by 22.7% during the first quarter. PNC Financial Services Group Inc. now owns 135,724 shares of the company's stock valued at $73,022,000 after buying an additional 25,125 shares during the last quarter. Oslo Pensjonsforsikring AS purchased a new stake in shares of Cummins during the first quarter valued at $501,000. Finally, HORAN Wealth LLC acquired a new position in shares of Cummins in the 1st quarter valued at $945,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Transactions at Cummins

In related news, VP Donald G. Jackson sold 730 shares of the firm's stock in a transaction dated 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 directly owned 8,316 shares of the company's stock, valued at $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of Cummins 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 transaction, the vice president owned 11,986 shares of the company's stock, valued at approximately $8,344,773.06. This represents a 29.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Barclays raised their target price on Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Morgan Stanley boosted their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Sanford C. Bernstein restated a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. Citigroup raised their price objective on Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Finally, Evercore reaffirmed an "outperform" rating and set a $845.00 target price on shares of Cummins in a report on Monday, May 11th. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Cummins currently has an average rating of "Moderate Buy" and an average target price of $740.07.

Cummins Trading Up 3.2%

Shares of Cummins stock opened at $659.94 on Wednesday. The stock has a market cap of $91.07 billion, a PE ratio of 34.25, a price-to-earnings-growth ratio of 1.56 and a beta of 1.22. The firm has a fifty day moving average price of $674.90 and a 200 day moving average price of $616.91. Cummins Inc. has a 1 year low of $344.02 and a 1 year high of $737.76. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11.

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, beating the consensus estimate 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 net margin of 7.89% and a return on equity of 25.25%. The firm's revenue was up 2.7% on a year-over-year basis. During the same period in the prior year, the company earned $5.96 earnings per share. Equities research analysts predict that Cummins Inc. will post 29.39 earnings per share for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a $2.20 dividend. This is a boost from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.3%. Cummins's payout ratio is presently 41.52%.

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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