AlphaQuest LLC Acquires 2,591 Shares of Cummins Inc. $CMI

Key Points

• AlphaQuest LLC increased its holdings in Cummins Inc. by 209.5%, acquiring 2,591 additional shares, bringing its total to 3,828 shares worth approximately $1.2 million at the end of the quarter.
• Several institutional investors, including Vanguard Group and Raymond James Financial, have also expanded their stakes in Cummins, indicating strong institutional interest in the company.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00, reflecting a commitment to returning value to shareholders, with an annualized yield of 2.0%.

AlphaQuest LLC raised its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 209.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 3,828 shares of the company's stock after acquiring an additional 2,591 shares during the period. AlphaQuest LLC's holdings in Cummins were worth $1,200,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Vanguard Group Inc. grew its position in Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after acquiring an additional 321,823 shares during the last quarter. Northern Trust Corp grew its position in Cummins by 1.2% in the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock valued at $597,170,000 after acquiring an additional 22,202 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Cummins by 6.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock valued at $566,856,000 after acquiring an additional 99,009 shares during the last quarter. Raymond James Financial Inc. grew its position in Cummins by 152.3% in the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after acquiring an additional 817,384 shares during the last quarter. Finally, Royal Bank of Canada grew its position in Cummins by 3.7% in the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock valued at $443,169,000 after acquiring an additional 44,907 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

A number of research firms have issued reports on CMI. Robert W. Baird lifted their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research note on Tuesday. Truist Financial lifted their price target on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Finally, JPMorgan Chase & Co. lifted their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Seven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $370.83.

Cummins Price Performance

Cummins stock opened at $402.0750 on Friday. The stock's 50 day moving average is $355.04 and its 200 day moving average is $334.29. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The firm has a market cap of $55.40 billion, a P/E ratio of 18.90, a P/E/G ratio of 1.94 and a beta of 1.02. Cummins Inc. has a one year low of $260.02 and a one year high of $408.38.

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

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be paid a $2.00 dividend. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's payout ratio is presently 34.23%.

Insider Buying and Selling

In related news, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the transaction, the vice president directly owned 20,738 shares in the company, 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. Insiders sold 24,179 shares of company stock valued at $9,636,871 over the last 90 days. 0.41% of the stock is currently owned by corporate insiders.

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.

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