Cummins Inc. $CMI Stock: Sterling Capital Management LLC Lowers Position

Sterling Capital Management LLC lessened its position in Cummins Inc. (NYSE:CMI) by 19.5% in the third quarter, HoldingsChannel.com reports. The institutional investor owned 12,083 shares of the company’s stock after selling 2,918 shares during the period. Sterling Capital Management LLC’s holdings in Cummins were worth $6,242,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. BlackRock Inc. acquired a new stake in Cummins during the second quarter worth approximately $8,204,241,000. Bank of America Corp DE purchased a new stake in Cummins in the 2nd quarter worth approximately $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in Cummins in the 2nd quarter worth approximately $973,198,000. Robeco Institutional Asset Management B.V. raised its holdings in Cummins by 6.4% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company’s stock valued at $530,405,000 after acquiring an additional 62,107 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in Cummins in the 2nd quarter valued at $666,635,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on CMI shares. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $700.00 price objective on shares of Cummins in a research report on Wednesday, August 5th. Bank of America reduced their target price on Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Zacks Research downgraded Cummins from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. Evercore decreased their price target on Cummins from $845.00 to $782.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 11th. Finally, CICC Research assumed coverage on Cummins in a report on Sunday, August 23rd. They issued an “outperform” rating and a $781.00 price target for the company. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $703.18.

Cummins Stock Performance

Shares of CMI stock opened at $517.64 on Friday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The firm has a market capitalization of $71.26 billion, a price-to-earnings ratio of 26.45, a price-to-earnings-growth ratio of 1.37 and a beta of 1.24. Cummins Inc. has a one year low of $413.98 and a one year high of $737.76. The company has a 50 day moving average price of $545.26 and a 200 day moving average price of $619.42.

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

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a $2.20 dividend. This represents a $8.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, November 20th. Cummins’s dividend payout ratio (DPR) is 44.97%.

Insider Buying and Selling at Cummins

In related news, VP Earl Newsome sold 698 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the transaction, the vice president directly 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 filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.30% of the company’s stock.

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.