Cummins Inc. $CMI Shares Purchased by AQR Capital Management LLC

Key Points

• AQR Capital Management LLC increased its stake in Cummins Inc. by 70.9%, owning approximately 0.74% of the company with a value of $314.9 million as of the most recent filing.
• Cummins declared a quarterly dividend of $2.00 per share, up from the previous $1.82, reflecting a dividend yield of 2.0% and a payout ratio of 37.61%.
• Despite a decline of 1.0% in stock value on the reported day, Cummins reported earnings per share of $6.43, exceeding analyst estimates of $5.21.

AQR Capital Management LLC raised its stake in Cummins Inc. (NYSE:CMI - Free Report) by 70.9% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,022,373 shares of the company's stock after acquiring an additional 424,294 shares during the quarter. AQR Capital Management LLC owned approximately 0.74% of Cummins worth $314,942,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of the stock. Advisors Asset Management Inc. lifted its holdings in Cummins by 30.7% in the first quarter. Advisors Asset Management Inc. now owns 41,739 shares of the company's stock valued at $13,083,000 after acquiring an additional 9,810 shares during the period. Federation des caisses Desjardins du Quebec raised its stake in shares of Cummins by 11.2% during the 1st quarter. Federation des caisses Desjardins du Quebec now owns 31,837 shares of the company's stock worth $9,980,000 after buying an additional 3,207 shares during the period. Dark Forest Capital Management LP acquired a new position in shares of Cummins during the 1st quarter worth approximately $4,356,000. 1248 Management LLC acquired a new position in shares of Cummins during the 1st quarter worth approximately $83,000. Finally, Focus Partners Advisor Solutions LLC raised its stake in shares of Cummins by 80.0% during the 1st quarter. Focus Partners Advisor Solutions LLC now owns 4,507 shares of the company's stock worth $1,413,000 after buying an additional 2,003 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CMI. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research note on Wednesday. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research note on Wednesday. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Barclays boosted their price target on 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Cummins Price Performance

Shares of CMI traded down $0.80 during trading hours on Friday, hitting $400.13. 864,159 shares of the stock were exchanged, compared to its average volume of 706,473. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The company has a market cap of $55.13 billion, a price-to-earnings ratio of 18.81, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The stock's 50-day moving average price is $370.88 and its two-hundred day moving average price is $336.01.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) 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 analysts' expectations 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 prior year, the business earned $5.26 EPS. Research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were issued a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 2.0%. The ex-dividend date was Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Insider Buying and Selling

In other news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction 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 completion of the transaction, the vice president directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total value of $529,766.31. Following the transaction, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock worth $10,385,075 over the last quarter. Corporate 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.