1832 Asset Management L.P. Purchases Shares of 9,451 Cummins Inc. $CMI

Key Points

• 1832 Asset Management L.P. has acquired a new position in Cummins Inc., purchasing 9,451 shares for approximately $2.96 million during the first quarter.
• Analysts have varying ratings on Cummins, with seven analysts rating it as a Buy and a consensus price target of $370.83.
• Cummins announced an increase in its quarterly dividend to $2.00, up from $1.82, reflecting a positive outlook with an annualized yield of 2.0%.

1832 Asset Management L.P. purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 9,451 shares of the company's stock, valued at approximately $2,962,000.

A number of other hedge funds also recently made changes to their positions in CMI. Fox Run Management L.L.C. bought a new stake in Cummins in the first quarter valued at about $2,749,000. Alpha Cubed Investments LLC acquired a new stake in Cummins during the first quarter valued at approximately $440,000. Assenagon Asset Management S.A. boosted its holdings in Cummins by 8.9% during the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after purchasing an additional 1,114 shares in the last quarter. Invesco Ltd. grew its stake in shares of Cummins by 11.6% in the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after purchasing an additional 126,362 shares during the period. Finally, Artemis Investment Management LLP lifted its position in shares of Cummins by 19.1% during the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock worth $2,428,000 after buying an additional 1,241 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Trading Up 0.2%

Shares of CMI traded up $0.80 on Thursday, reaching $402.20. 453,716 shares of the company's stock were exchanged, compared to its average volume of 876,740. The business has a 50 day moving average price of $359.93 and a two-hundred day moving average price of $335.12. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38. The stock has a market capitalization of $55.42 billion, a P/E ratio of 18.91, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The firm had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business's quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.26 EPS. Research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Insider Activity at Cummins

In related news, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director directly owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president owned 7,693 shares in the company, valued at $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,039 shares of company stock valued at $10,385,075. 0.41% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CMI. JPMorgan Chase & Co. lifted their price objective on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Morgan Stanley boosted their price target on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Robert W. Baird boosted their target price on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Finally, Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Seven research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $370.83.

About Cummins

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.