Legato Capital Management LLC Acquires New Position in Cummins Inc. $CMI

Legato Capital Management LLC acquired a new stake in shares of Cummins Inc. (NYSE:CMI) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 1,128 shares of the company’s stock, valued at approximately $576,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in CMI. Northwestern Mutual Wealth Management Co. grew its position in Cummins by 10,317.7% during the fourth 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 in the last quarter. Boston Partners bought a new stake in Cummins in the third quarter worth approximately $473,471,000. London Co. of Virginia bought a new stake in Cummins in the third quarter worth approximately $231,732,000. Bank of New York Mellon Corp grew its position in Cummins by 50.8% in the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company’s stock worth $612,715,000 after acquiring an additional 488,430 shares in the last quarter. Finally, Nordea Investment Management AB grew its position in Cummins by 103.8% in the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company’s stock worth $280,397,000 after acquiring an additional 278,350 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have commented on CMI shares. JPMorgan Chase & Co. boosted their target price on shares of Cummins from $600.00 to $725.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Barclays boosted their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Evercore reissued an “outperform” rating and issued a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Argus set a $696.00 target price on shares of Cummins in a research report on Tuesday, February 10th. Finally, Sanford C. Bernstein reissued a “market perform” rating on shares of Cummins in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $700.50.

Insider Buying and Selling at Cummins

In related news, VP Jennifer Mary Bush sold 5,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president directly owned 11,986 shares of the company’s stock, valued at approximately $8,344,773.06. This represents a 29.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Bonnie J. Fetch sold 652 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $700.19, for a total transaction of $456,523.88. Following the transaction, the executive vice president owned 11,679 shares of the company’s stock, valued at approximately $8,177,519.01. The trade was a 5.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 17,633 shares of company stock worth $11,653,357 in the last quarter. 0.30% of the stock is owned by corporate insiders.

Cummins Price Performance

NYSE CMI opened at $668.64 on Wednesday. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The company has a fifty day simple moving average of $616.71 and a 200 day simple moving average of $566.52. The company has a market cap of $92.27 billion, a P/E ratio of 34.70, a P/E/G ratio of 1.58 and a beta of 1.27. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $718.08.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. Cummins’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.96 EPS. On average, sell-side analysts predict that Cummins Inc. will post 28.93 EPS for the current year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Friday, May 22nd will be issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins’s dividend payout ratio is currently 41.52%.

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.