Checchi Capital Advisers LLC Buys New Stake in Cummins Inc. (CMI)

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Checchi Capital Advisers LLC bought a new position in shares of Cummins Inc. (NYSE:CMI) during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 1,519 shares of the company’s stock, valued at approximately $222,000.

A number of other institutional investors have also recently made changes to their positions in the stock. Boston Partners increased its holdings in Cummins by 45.4% in the second quarter. Boston Partners now owns 4,918,989 shares of the company’s stock valued at $654,225,000 after buying an additional 1,534,792 shares during the last quarter. FMR LLC boosted its stake in Cummins by 11.6% in the second quarter. FMR LLC now owns 2,385,506 shares of the company’s stock valued at $317,272,000 after acquiring an additional 248,721 shares during the period. LSV Asset Management boosted its stake in Cummins by 76.6% in the second quarter. LSV Asset Management now owns 1,800,245 shares of the company’s stock valued at $239,432,000 after acquiring an additional 781,118 shares during the period. Morgan Stanley boosted its stake in Cummins by 19.9% in the second quarter. Morgan Stanley now owns 1,640,574 shares of the company’s stock valued at $218,195,000 after acquiring an additional 272,372 shares during the period. Finally, Millennium Management LLC boosted its stake in Cummins by 12.0% in the second quarter. Millennium Management LLC now owns 824,724 shares of the company’s stock valued at $109,688,000 after acquiring an additional 88,098 shares during the period. 79.42% of the stock is owned by hedge funds and other institutional investors.

Shares of NYSE:CMI opened at $134.40 on Wednesday. Cummins Inc. has a 12 month low of $124.72 and a 12 month high of $194.18. The company has a market cap of $21.22 billion, a P/E ratio of 9.97, a PEG ratio of 0.73 and a beta of 1.12. The company has a current ratio of 1.61, a quick ratio of 1.03 and a debt-to-equity ratio of 0.19.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $3.69 by $0.36. The company had revenue of $5.94 billion for the quarter, compared to analysts’ expectations of $5.96 billion. Cummins had a return on equity of 26.30% and a net margin of 4.67%. The firm’s revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.71 earnings per share. As a group, analysts anticipate that Cummins Inc. will post 15 earnings per share for the current fiscal year.

Cummins announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, October 9th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 8.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

The business also recently declared a quarterly dividend, which will be paid on Monday, December 3rd. Shareholders of record on Thursday, November 15th will be issued a $1.14 dividend. The ex-dividend date is Wednesday, November 14th. This represents a $4.56 annualized dividend and a dividend yield of 3.39%. Cummins’s dividend payout ratio is currently 42.94%.

In other Cummins 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 transaction, the vice president now owns 4,463 shares of the company’s stock, valued at $684,044.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Alexis M. Herman sold 735 shares of the company’s stock in a transaction on Friday, August 3rd. The shares were sold at an average price of $139.90, for a total value of $102,826.50. The disclosure for this sale can be found here. Insiders sold 26,087 shares of company stock worth $3,914,211 in the last ninety days. 0.67% of the stock is owned by corporate insiders.

CMI has been the subject of a number of research reports. Wells Fargo & Co set a $158.00 target price on Cummins and gave the company a “hold” rating in a research note on Wednesday, August 1st. JPMorgan Chase & Co. downgraded Cummins from a “neutral” rating to an “underweight” rating and decreased their target price for the company from $156.00 to $137.00 in a research note on Friday, August 24th. Zacks Investment Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $157.00 target price for the company in a research note on Tuesday, October 23rd. Bank of America lifted their target price on Cummins from $157.00 to $160.00 and gave the company a “neutral” rating in a research note on Tuesday, October 9th. Finally, ValuEngine upgraded Cummins from a “strong sell” rating to a “sell” rating in a research note on Friday, September 21st. Four research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and eight have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $167.18.

Cummins 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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Institutional Ownership by Quarter for Cummins (NYSE:CMI)

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