Cummins Inc. $CMI Stock: Rakuten Investment Management Inc. Increases Position

Rakuten Investment Management Inc. boosted its position in shares of Cummins Inc. (NYSE:CMI) by 9.5% in the third quarter, according to the company in its most recent filing with the SEC. The firm owned 24,730 shares of the company’s stock after acquiring an additional 2,150 shares during the quarter. Rakuten Investment Management Inc.’s holdings in Cummins were worth $12,893,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Cummins in the 2nd quarter valued at $8,204,241,000. Bank of America Corp DE acquired a new stake in shares of Cummins in the second quarter worth $1,408,353,000. Bank of New York Mellon Corp purchased a new position in shares of Cummins during the second quarter worth $973,198,000. Legal & General Group Plc purchased a new position in shares of Cummins during the second quarter worth $666,635,000. Finally, Vontobel Holding Ltd. lifted its position in Cummins by 1,436.1% during the third quarter. Vontobel Holding Ltd. now owns 584,674 shares of the company’s stock valued at $302,025,000 after purchasing an additional 546,613 shares during the period. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Insider Transactions at Cummins

In other news, VP Earl Newsome sold 698 shares of the firm’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the sale, the vice president owned 4,479 shares of the company’s stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.30% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on CMI shares. UBS Group reduced their price target on Cummins from $835.00 to $741.00 and set a “buy” rating for the company in a research report on Wednesday, September 30th. DA Davidson upped their price objective on Cummins from $605.00 to $750.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Morgan Stanley upped their price objective on Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Weiss Ratings cut shares of Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, August 31st. Finally, Truist Financial cut their target price on shares of Cummins from $894.00 to $779.00 and set a “buy” rating for the company in a report on Monday, October 5th. Thirteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $694.24.

Cummins Stock Down 5.7%

CMI stock opened at $472.37 on Thursday. Cummins Inc. has a one year low of $427.50 and a one year high of $737.76. The firm’s 50 day moving average price is $531.57 and its 200-day moving average price is $600.85. The firm has a market cap of $65.03 billion, a PE ratio of 24.14, a PEG ratio of 1.32 and a beta of 1.26. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the prior year, the company posted $6.43 EPS. On average, equities research analysts anticipate that Cummins Inc. will post 29.98 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, November 20th will be given a dividend of $2.20 per share. This represents a $8.80 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, November 20th. Cummins’s payout ratio is 44.97%.

About Cummins

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins’ product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.