Northwestern Mutual Wealth Management Co. grew its stake in Cummins Inc. (NYSE:CMI) by 9.8% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 24,717 shares of the company’s stock after purchasing an additional 2,197 shares during the period. Northwestern Mutual Wealth Management Co.’s holdings in Cummins were worth $3,610,000 at the end of the most recent reporting period.
Several other large investors also recently added to or reduced their stakes in CMI. Edge Wealth Management LLC acquired a new position in Cummins during the third quarter worth $102,000. Migdal Insurance & Financial Holdings Ltd. grew its holdings in Cummins by 5,873.3% during the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 896 shares of the company’s stock worth $119,000 after acquiring an additional 881 shares during the period. MHI Funds LLC acquired a new position in Cummins during the second quarter worth $147,000. Qube Research & Technologies Ltd acquired a new position in Cummins during the second quarter worth $155,000. Finally, Centaurus Financial Inc. grew its holdings in Cummins by 73.2% during the second quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock worth $164,000 after acquiring an additional 520 shares during the period. 79.79% of the stock is currently owned by institutional investors and hedge funds.
CMI opened at $146.73 on Thursday. The company has a current ratio of 1.54, a quick ratio of 0.94 and a debt-to-equity ratio of 0.19. The firm has a market cap of $23.30 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 0.79 and a beta of 1.16. Cummins Inc. has a one year low of $124.72 and a one year high of $194.18.
Cummins announced that its Board of Directors has initiated a stock buyback plan on Tuesday, October 9th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 8.3% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Stockholders of record on Thursday, November 15th will be given a $1.14 dividend. The ex-dividend date is Wednesday, November 14th. This represents a $4.56 annualized dividend and a dividend yield of 3.11%. Cummins’s dividend payout ratio is currently 42.94%.
In other news, VP Mark Andrew Smith sold 501 shares of the company’s stock in a transaction on Tuesday, October 9th. The stock was sold at an average price of $153.27, for a total value of $76,788.27. Following the sale, the vice president now directly owns 4,463 shares in the company, valued at $684,044.01. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Alexis M. Herman sold 775 shares of the company’s stock in a transaction on Monday, November 5th. The shares were sold at an average price of $143.64, for a total value of $111,321.00. Following the completion of the sale, the director now owns 30,069 shares in the company, valued at $4,319,111.16. The disclosure for this sale can be found here. Insiders sold 26,495 shares of company stock worth $3,974,777 over the last 90 days. Company insiders own 0.62% of the company’s stock.
A number of brokerages recently weighed in on CMI. ValuEngine raised Cummins from a “strong sell” rating to a “sell” rating in a report on Friday, September 21st. Stifel Nicolaus upped their price objective on Cummins from $172.00 to $174.00 and gave the stock a “buy” rating in a report on Wednesday, October 10th. Piper Jaffray Companies raised Cummins from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $143.00 to $188.00 in a report on Thursday, October 4th. Bank of America boosted their target price on Cummins from $157.00 to $160.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 9th. Finally, Zacks Investment Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $166.00 target price on the stock in a research report on Wednesday, September 26th. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eight have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $163.30.
Cummins Company Profile
Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.
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