Cummins Inc. $CMI Stock: QV Investors Inc. Cuts Position

QV Investors Inc. lessened its holdings in shares of Cummins Inc. (NYSE:CMI) by 26.1% during the third quarter, HoldingsChannel reports. The fund owned 5,485 shares of the company’s stock after selling 1,935 shares during the period. QV Investors Inc.’s holdings in Cummins were worth $2,833,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Cummins during the 2nd quarter valued at approximately $8,204,241,000. Bank of America Corp DE purchased a new position in Cummins in the 2nd quarter valued at about $1,408,353,000. Bank of New York Mellon Corp acquired a new stake in Cummins during the second quarter worth approximately $973,198,000. Legal & General Group Plc acquired a new stake in shares of Cummins during the second quarter worth $666,635,000. Finally, Vontobel Holding Ltd. boosted its stake in Cummins by 1,436.1% in the 3rd quarter. Vontobel Holding Ltd. now owns 584,674 shares of the company’s stock worth $302,025,000 after buying an additional 546,613 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Evercore decreased their price target on shares of Cummins from $845.00 to $782.00 and set an “outperform” rating on the stock in a report on Tuesday, August 11th. DA Davidson increased their price objective on shares of Cummins from $605.00 to $750.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Sanford C. Bernstein restated a “market perform” rating and set a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Wells Fargo & Company decreased their price target on shares of Cummins from $874.00 to $760.00 and set an “overweight” rating for the company in a research report on Thursday, October 8th. Finally, Zacks Research lowered Cummins from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Cummins presently has a consensus rating of “Moderate Buy” and a consensus price target of $703.18.

Cummins Stock Performance

CMI opened at $535.42 on Wednesday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. Cummins Inc. has a twelve month low of $407.57 and a twelve month high of $737.76. The business’s 50 day moving average is $551.71 and its 200-day moving average is $620.41. The stock has a market cap of $73.71 billion, a PE ratio of 27.36, a price-to-earnings-growth ratio of 1.38 and a beta of 1.24.

Cummins (NYSE:CMI) last released 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 during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the previous year, the company posted $6.43 EPS. On average, analysts predict that Cummins Inc. will post 29.98 earnings per share for the current year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be given a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, November 20th. Cummins’s dividend payout ratio is 44.97%.

Insiders Place Their Bets

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

Cummins Profile

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.