Parnassus Investments LLC Lowers Stake in Cummins Inc. $CMI

Parnassus Investments LLC decreased its position in Cummins Inc. (NYSE:CMI) by 14.8% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 291,491 shares of the company’s stock after selling 50,547 shares during the quarter. Parnassus Investments LLC’s holdings in Cummins were worth $123,117,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of CMI. Brighton Jones LLC increased its position in shares of Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock worth $736,000 after acquiring an additional 83 shares during the period. Caxton Associates LLP acquired a new stake in shares of Cummins in the first quarter worth approximately $431,000. Integrity Alliance LLC. acquired a new position in Cummins during the first quarter worth approximately $1,321,000. Focus Partners Wealth raised its stake in Cummins by 37.6% during the first quarter. Focus Partners Wealth now owns 34,639 shares of the company’s stock worth $10,858,000 after purchasing an additional 9,474 shares during the period. Finally, Intech Investment Management LLC boosted its holdings in shares of Cummins by 40.8% in the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock valued at $1,240,000 after purchasing an additional 1,146 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Trading Up 1.5%

Shares of CMI stock opened at $552.52 on Friday. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $554.15. The company has a market cap of $76.27 billion, a PE ratio of 28.67, a price-to-earnings-growth ratio of 1.90 and a beta of 1.12. The business’s 50 day moving average is $498.53 and its two-hundred day moving average is $427.61. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52.

Cummins (NYSE:CMI) last issued its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, beating the consensus estimate of $4.83 by $0.76. Cummins had a net margin of 7.95% and a return on equity of 26.02%. The business had revenue of $8.32 billion for the quarter, compared to analyst estimates of $7.97 billion. During the same period in the previous year, the business earned $5.86 EPS. The firm’s revenue was down 1.6% on a year-over-year basis. Equities analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 4th. Investors of record on Friday, November 21st were paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, November 21st. Cummins’s payout ratio is 41.52%.

Insider Activity at Cummins

In related news, CFO Mark Andrew Smith sold 13,110 shares of the stock in a transaction dated Thursday, November 6th. The stock was sold at an average price of $470.66, for a total transaction of $6,170,352.60. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares in the company, valued at approximately $14,864,384.12. This trade represents a 29.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Brett Michael Merritt sold 1,450 shares of Cummins stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total value of $709,514.00. Following the transaction, the insider owned 9,271 shares of the company’s stock, valued at $4,536,485.72. This represents a 13.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 19,330 shares of company stock worth $9,135,364 over the last ninety days. Company insiders own 0.41% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on CMI shares. UBS Group upgraded Cummins from a “sell” rating to a “neutral” rating in a report on Tuesday, November 25th. JPMorgan Chase & Co. boosted their target price on Cummins from $400.00 to $460.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 14th. Zacks Research upgraded Cummins from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, December 30th. Wall Street Zen upgraded Cummins from a “hold” rating to a “buy” rating in a report on Saturday, November 15th. Finally, Wells Fargo & Company assumed coverage on shares of Cummins in a report on Thursday, November 13th. They issued an “overweight” rating and a $599.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $492.75.

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.