AIA Group Ltd Buys Shares of 799 Cummins Inc. (NYSE:CMI)

Key Points

• AIA Group Ltd acquired 799 shares of Cummins Inc. for approximately $250,000 in the first quarter, showcasing growing interest from institutional investors in the company.
• Cummins recently reported an Earnings Per Share (EPS) of $6.43, exceeding expectations, and declared a quarterly dividend of $2.00 per share, up from $1.82, reflecting confidence in its financial performance.
• Analysts have mixed outlooks on Cummins, with price targets ranging from $320.00 to $431.00, indicating a cautious optimism regarding its future growth prospects.

AIA Group Ltd bought a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The institutional investor bought 799 shares of the company's stock, valued at approximately $250,000.

Several other hedge funds have also modified their holdings of the company. Longfellow Investment Management Co. LLC raised its position in shares of Cummins by 54.3% in the 1st quarter. Longfellow Investment Management Co. LLC now owns 2,675 shares of the company's stock valued at $838,000 after purchasing an additional 941 shares during the last quarter. Motley Fool Asset Management LLC raised its position in Cummins by 3.2% during the 1st quarter. Motley Fool Asset Management LLC now owns 6,395 shares of the company's stock worth $2,004,000 after buying an additional 201 shares during the last quarter. Independent Advisor Alliance raised its position in Cummins by 15.3% during the 1st quarter. Independent Advisor Alliance now owns 5,631 shares of the company's stock worth $1,765,000 after buying an additional 748 shares during the last quarter. CCM Investment Group LLC purchased a new position in Cummins during the 1st quarter worth approximately $1,956,000. Finally, Nuveen LLC purchased a new position in Cummins during the 1st quarter worth approximately $109,120,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on CMI shares. Evercore ISI cut their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a report on Monday, May 19th. Morgan Stanley lifted their target price on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 6th. JPMorgan Chase & Co. lifted their price target on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a report on Tuesday, May 6th. Barclays boosted their price objective 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. Finally, Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $370.83.

Cummins Trading Down 1.6%

Shares of NYSE CMI traded down $6.35 during midday trading on Friday, hitting $398.45. The stock had a trading volume of 701,253 shares, compared to its average volume of 1,050,250. The company has a fifty day moving average price of $347.51 and a 200 day moving average price of $333.05. The company has a market capitalization of $54.90 billion, a price-to-earnings ratio of 18.73, a PEG ratio of 1.97 and a beta of 1.02. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38.

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

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. Cummins's payout ratio is presently 37.61%.

Insiders Place Their Bets

In other news, CFO Mark Andrew Smith sold 6,500 shares of the company's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the sale, the chief financial officer owned 31,582 shares in the company, valued at $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the sale, the vice president directly owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 22,872 shares of company stock worth $9,107,105. Insiders own 0.41% of the company's stock.

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.