Acadian Asset Management LLC Purchases 26,385 Shares of Cummins Inc. $CMI

Key Points

• Acadian Asset Management LLC significantly increased its stake in Cummins Inc. by 155.8%, acquiring an additional 26,385 shares, bringing its total holdings to 43,315 shares worth approximately $13.57 million.
• Wall Street analysts have shown a positive outlook for Cummins, with multiple firms raising their ratings and price targets, contributing to a consensus rating of "Moderate Buy" and a price target of $389.29.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, representing an annual yield of 1.9% and reinforcing its solid financial performance amid fluctuations in earnings.

Acadian Asset Management LLC grew its stake in Cummins Inc. (NYSE:CMI - Free Report) by 155.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 43,315 shares of the company's stock after acquiring an additional 26,385 shares during the period. Acadian Asset Management LLC's holdings in Cummins were worth $13,572,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in CMI. Brighton Jones LLC grew its stake in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after acquiring an additional 83 shares in the last quarter. Janus Henderson Group PLC grew its stake in Cummins by 19.2% in the 4th quarter. Janus Henderson Group PLC now owns 94,641 shares of the company's stock worth $33,008,000 after acquiring an additional 15,271 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Cummins by 80.0% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 51,928 shares of the company's stock worth $18,102,000 after acquiring an additional 23,078 shares in the last quarter. Nuveen Asset Management LLC grew its stake in Cummins by 29.4% in the 4th quarter. Nuveen Asset Management LLC now owns 385,475 shares of the company's stock worth $134,377,000 after acquiring an additional 87,505 shares in the last quarter. Finally, NorthRock Partners LLC bought a new position in Cummins in the 4th quarter worth about $273,000. 83.46% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

CMI has been the subject of several research reports. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a research report on Wednesday, September 3rd. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and upped their price target for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Robert W. Baird upped their price target on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Finally, Barclays upped their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Nine equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Insider Buying and Selling

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the completion of the transaction, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This represents a 17.07% decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock valued at $10,385,075 over the last quarter. Insiders own 0.41% of the company's stock.

Cummins Price Performance

Shares of CMI opened at $411.50 on Friday. The company has a market cap of $56.70 billion, a price-to-earnings ratio of 19.35, a price-to-earnings-growth ratio of 1.96 and a beta of 1.02. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $413.66. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The company has a 50 day moving average of $376.59 and a two-hundred day moving average of $337.12.

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

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.9%. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. Cummins's payout ratio is 37.61%.

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.

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