Fisher Asset Management LLC Boosts Stake in Cummins Inc. by 634.9%: A Striking Move in the Markets
July 20, 2023
In a surprising turn of events, Fisher Asset Management LLC has significantly increased its stake in Cummins Inc. (NYSE:CMI) during the first quarter of this year, according to the company’s recent 13F filing with the Securities and Exchange Commission. The investment firm now owns an astonishing 2,078,297 shares of the company’s stock after purchasing an additional 1,795,480 shares during the period. This represents an astounding surge of 634.9%, leaving market observers perplexed and investors astounded.
The bold move by Fisher Asset Management LLC highlights their unwavering confidence in Cummins Inc., a leader in the design, manufacture, distribution, and servicing of diesel and natural gas engines alongside electric and hybrid powertrains and related components worldwide. With a firm grip on multiple markets including heavy-duty trucking, construction, marine, agriculture, and more, Cummins stands as a formidable player in the industry.
Cummins has recently demonstrated its strength through impressive financial performance. The company reported exceptional quarterly earnings results on May 2nd which surpassed analysts’ consensus estimates by $0.85 per share. With earnings per share reaching $5.55 for that period compared to the estimated $4.70 figure, Cummins showcased its ability to outperform expectations.
Additionally, Cummins boasted a remarkable return on equity of 25.94%, further bolstering its reputation as a financially robust entity. Coupled with a net margin of 8.37%, it is evident that this corporation has positioned itself as a key player within its sector.
Cummins also recorded extraordinary revenue figures for the quarter, surpassing previous records with $8.45 billion compared to market consensus estimates of $8.13 billion. This represents a remarkable increase of 32.4% in revenue compared to the same quarter last year, clearly indicating substantial growth and development within the company.
As industry analysts eagerly await Cummins’ full-year fiscal report, they forecast that the company will post an impressive 19.8 earnings per share for the current fiscal year. Such projections further solidify Cummins’ position as a market leader with promising prospects on the horizon.
Cummins operates through five distinct segments: Engine, Distribution, Components, Power Systems, and New Power. This diverse portfolio allows them to cater to a vast clientele across various industries. Their diesel and natural gas-powered engines are highly regarded by customers worldwide and are utilized in heavy-duty trucks, buses, recreational vehicles, light-duty automobiles, construction machinery, mining equipment, marine vessels, railways, oil and gas projects, defense systems, as well as agriculture applications.
Furthermore, Cummins offers comprehensive parts and services to its clients alongside remanufactured parts and engines for those seeking sustainable solutions. By continually expanding their offerings to meet customers’ evolving needs while balancing innovation with operational excellence, Cummins has secured a prominent place within the industry.
Fisher Asset Management LLC’s decision to significantly increase its stake in Cummins Inc. reflects their confidence in the future of this industry titan. With a strong track record of financial success and an extensive portfolio of reliable products and services catering to diverse markets worldwide, Cummins stands at the forefront of innovation and sustainability.
As investors analyze these perplexing developments in the market’s dynamics surrounding Cummins Inc., it becomes evident that this corporation’s journey is one worth monitoring closely due to its substantial growth potential and unwavering commitment to delivering excellence across multiple sectors.
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Cummins Inc Sees Hedge Fund Positions Change; Analysts Give Mixed Outlook
Cummins Inc, a leading global manufacturer of diesel and natural gas engines, electric and hybrid powertrains, and related components, has seen changes in its positions among hedge funds in recent months. Virtu Financial LLC purchased a new stake in Cummins during the first quarter for $290,000. Sheaff Brock Investment Advisors LLC increased its stake in Cummins by 0.8% during the same period, now owning 30,482 shares valued at $7,282,000. Texas Permanent School Fund Corp also raised its stake in Cummins by 47.0% in the first quarter, acquiring an additional 9,423 shares valued at $7,037,000. Knights of Columbus Asset Advisors LLC followed suit with a 0.8% increase in its stake by acquiring an additional 176 shares worth $5,473,000. Arete Wealth Advisors LLC entered the game as well by purchasing a new stake worth an astounding $209 billion during the same period. Institutional investors currently own 82.72% of the company’s stock.
On Thursday morning, shares of Cummins Inc opened on the New York Stock Exchange at $258.85. The company boasts a quick ratio of 0.80 and a current ratio of 1.29 while maintaining a debt-to-equity ratio of 0.42. With a market capitalization of $36.64 billion and a price-to-earnings ratio of 14.59, Cummins remains an influential player within the industry.
The company’s fifty-day simple moving average stands at $231.37 with its two-hundred-day simple moving average standing slightly higher at $236.87.As such,Cummins Inc has recorded a yearly low of$200.$34 along with impressive record highs reaching$261.$91.
Cummins Inc operates through five segments: Engine,Distribution.Components.Power Systems,and New Power.The firm designs,.manufacturers,distributes,and services a wide range of engines for various applications including heavy and medium-duty trucks,buses,recreational vehicles,automotive,construction,mining,marine,rail,oil and gas,defense,and agriculture.
Cummins recently announced its quarterly dividend,which will be paid on Thursday,September 7th. Shareholders of record on Friday,August 25th will receive a dividend of $0.0168 per share.The ex-dividend date is set for Thursday,August 24th,resulting in an annualized dividend yield of 0.03% and a payout ratio of 35.40%.
Analysts have been assessing Cummins Inc’s performance and outlook with mixed opinions. Citigroup raised its target price from $265 to $290,maintaining a “buy” rating. On the other hand, StockNews.com initiated coverage with a “buy” rating in May but did not provide any further updates. Deutsche Bank Aktiengesellschaft lowered its price target from$231 to $227 with a “hold” rating in April. Meanwhile,888 and VNET Group both reiterate their “maintains” ratings on Cummins’ stock.
Overall,Cummins Inc has garnered an average rating of “Hold” through Bloomberg’s data analysis,with the average price target currently standing at $253.33.