Longbow Finance SA Takes Position in Cummins Inc. (NYSE:CMI)

Key Points

• Longbow Finance SA has acquired 11,288 shares of Cummins Inc. (NYSE:CMI), valued at approximately $3.54 million, signaling growing institutional interest in the company.
• Director John H. Stone significantly increased his holdings by purchasing 1,000 shares at an average price of $332.08, raising his total position by 69.4%.
• Cummins announced an increase in its quarterly dividend to $2.00, up from $1.82, representing an annualized yield of 2.19% with a payout ratio of 39.80%.

Longbow Finance SA purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to its most recent 13F filing with the SEC. The firm purchased 11,288 shares of the company's stock, valued at approximately $3,538,000.

Several other large investors have also recently bought and sold shares of CMI. Brighton Jones LLC lifted its position in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after acquiring an additional 83 shares in the last quarter. Proficio Capital Partners LLC bought a new stake in Cummins in the 4th quarter valued at $204,000. Congress Wealth Management LLC DE lifted its position in Cummins by 74.1% during the 4th quarter. Congress Wealth Management LLC DE now owns 1,419 shares of the company's stock worth $495,000 after buying an additional 604 shares in the last quarter. Modern Wealth Management LLC bought a new stake in Cummins during the 4th quarter worth about $208,000. Finally, Meiji Yasuda Asset Management Co Ltd. raised its holdings in Cummins by 8.4% during the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 5,131 shares of the company's stock worth $1,789,000 after acquiring an additional 396 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Insiders Place Their Bets

In related news, Director John H. Stone acquired 1,000 shares of the stock in a transaction dated Friday, May 16th. The stock was bought at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the purchase, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. The trade was a 69.40% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.41% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and upped their target price for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Truist Financial dropped their target price on shares of Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a report on Tuesday, April 8th. Barclays upped their target price on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Robert W. Baird upped their target price on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Finally, Evercore ISI cut their price objective on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a research report on Monday, May 19th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Cummins currently has a consensus rating of "Hold" and an average price target of $361.92.

Cummins Trading Up 0.1%

Shares of NYSE:CMI traded up $0.31 during mid-day trading on Monday, reaching $369.83. 441,253 shares of the company's stock were exchanged, compared to its average volume of 872,050. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 1.34. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $387.90. The firm has a market capitalization of $50.95 billion, a price-to-earnings ratio of 18.39, a PEG ratio of 2.05 and a beta of 1.03. The business's fifty day moving average price is $330.38 and its 200-day moving average price is $330.69.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Monday, May 5th. The company reported $5.96 earnings per share for the quarter, beating the consensus estimate of $4.92 by $1.04. Cummins had a return on equity of 26.88% and a net margin of 8.20%. The company had revenue of $8.17 billion during the quarter, compared to analysts' expectations of $8.22 billion. During the same quarter in the prior year, the firm posted $5.08 earnings per share. The business's quarterly revenue was down 2.7% on a year-over-year basis. On average, research analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be paid a dividend of $2.00 per share. The ex-dividend date is Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 2.16%. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is currently 39.80%.

Cummins Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.