Aberdeen Group plc Boosts Stock Position in Cummins Inc. $CMI

Aberdeen Group plc grew its stake in shares of Cummins Inc. (NYSE:CMI) by 13.9% during the second quarter, Holdings Channel reports. The institutional investor owned 186,414 shares of the company’s stock after buying an additional 22,751 shares during the period. Aberdeen Group plc’s holdings in Cummins were worth $61,022,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently added to or reduced their stakes in CMI. Raymond James Financial Inc. lifted its holdings in Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company’s stock worth $424,414,000 after purchasing an additional 817,384 shares in the last quarter. AQR Capital Management LLC lifted its holdings in Cummins by 70.9% in the 1st quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company’s stock worth $314,942,000 after purchasing an additional 424,294 shares in the last quarter. Nuveen LLC purchased a new position in Cummins in the 1st quarter worth approximately $109,120,000. Vanguard Group Inc. lifted its holdings in Cummins by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company’s stock worth $5,417,331,000 after purchasing an additional 321,823 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in Cummins by 74.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 749,449 shares of the company’s stock worth $234,907,000 after purchasing an additional 319,277 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms recently commented on CMI. Wells Fargo & Company raised Cummins to an “overweight” rating in a report on Monday, August 11th. Citigroup boosted their price target on Cummins from $425.00 to $485.00 and gave the stock a “buy” rating in a report on Tuesday, September 23rd. Melius raised Cummins from a “hold” rating to a “buy” rating and set a $500.00 price objective on the stock in a report on Wednesday, September 3rd. Robert W. Baird upped their price objective on Cummins from $315.00 to $355.00 and gave the stock a “neutral” rating in a report on Friday, July 11th. Finally, Wolfe Research raised Cummins from a “hold” rating to an “outperform” rating in a report on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $397.43.

Cummins Stock Performance

NYSE:CMI opened at $413.28 on Friday. The stock’s fifty day moving average is $407.21 and its 200 day moving average is $349.52. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $440.51. The firm has a market capitalization of $56.95 billion, a PE ratio of 19.43, a PEG ratio of 2.00 and a beta of 1.04. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the prior year, the firm posted $5.26 EPS. Cummins’s quarterly revenue was down 1.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.9%. The ex-dividend date was Friday, August 22nd. This is a boost from Cummins’s previous quarterly dividend of $1.82. Cummins’s payout ratio is currently 37.61%.

Insider Activity at Cummins

In related news, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the sale, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president owned 7,693 shares in the company, valued at $2,994,038.67. The trade was a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 43,119 shares of company stock worth $17,674,285 in the last ninety days. Corporate insiders own 0.41% of the company’s stock.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.