UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC Sells 64,442 Shares of Cummins Inc. $CMI

Key Points

• UBS AM reduced its Cummins stake by 4.3% in the fourth quarter, selling 64,442 shares. It still held about 1.43 million shares worth roughly $730.9 million, or about 1.04% of the company.
• Cummins reported stronger-than-expected quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above forecasts. Revenue rose 2.7% year over year, and the company posted a 25.25% return on equity.
• Wall Street sentiment remains positive, with several analysts raising price targets, including UBS Group upgrading the stock to “buy” and lifting its target to $850. The consensus rating is “Moderate Buy,” with an average target price of $726.14.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC reduced its stake in Cummins Inc. (NYSE:CMI - Free Report) by 4.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,431,777 shares of the company's stock after selling 64,442 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned approximately 1.04% of Cummins worth $730,851,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of CMI. Northwestern Mutual Wealth Management Co. grew its stake in shares of Cummins by 10,317.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after purchasing an additional 2,434,876 shares during the period. Norges Bank bought a new stake in shares of Cummins in the 4th quarter valued at approximately $863,441,000. Boston Partners bought a new stake in shares of Cummins in the 3rd quarter valued at approximately $473,471,000. London Co. of Virginia bought a new stake in shares of Cummins in the 3rd quarter valued at approximately $231,732,000. Finally, Nordea Investment Management AB grew its stake in shares of Cummins by 103.8% in the 4th 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 during the period. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Up 0.6%

Shares of CMI opened at $659.77 on Friday. The firm has a market capitalization of $91.04 billion, a price-to-earnings ratio of 34.24, a PEG ratio of 1.60 and a beta of 1.23. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The business's fifty day moving average price is $648.43 and its two-hundred day moving average price is $583.26. Cummins Inc. has a 52 week low of $307.90 and a 52 week high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. The firm 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 business's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period last year, the company earned $5.96 EPS. On average, analysts predict that Cummins Inc. will post 29.29 earnings per share for the current year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CMI. JPMorgan Chase & Co. upped their price objective on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Sanford C. Bernstein restated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. UBS Group upgraded Cummins from a "neutral" rating to a "buy" rating and increased their price target for the stock from $565.00 to $850.00 in a research report on Monday. Morgan Stanley increased their price target on Cummins from $675.00 to $752.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, Truist Financial set a $815.00 price target on Cummins in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus target price of $726.14.

Insider Transactions at Cummins

In other news, CAO Nicole Lamb-Hale sold 2,408 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the transaction, the chief accounting officer owned 14,084 shares of the company's stock, valued at $9,652,328.56. This represents a 14.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Marvin Boakye sold 3,481 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the transaction, the vice president directly owned 8,508 shares in the company, valued at approximately $5,784,589.20. This trade represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 13,579 shares of company stock worth $9,377,684. Corporate insiders own 0.30% of the company's stock.

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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