BI Asset Management Fondsmaeglerselskab A S Boosts Stake in Cummins Inc. $CMI

Key Points

• BI Asset Management Fondsmaeglerselskab A S increased its holdings in Cummins Inc. by 400.1% in the first quarter, now owning 58,720 shares valued at approximately $18.41 million.
• Several other institutional investors also boosted their stakes in Cummins during the same period, with 83.46% of the company's stock now held by institutional investors and hedge funds.
• Cummins announced a quarterly dividend increase from $1.82 to $2.00 per share, representing an annualized yield of 2.0%.

BI Asset Management Fondsmaeglerselskab A S lifted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 400.1% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 58,720 shares of the company's stock after purchasing an additional 46,978 shares during the period. BI Asset Management Fondsmaeglerselskab A S's holdings in Cummins were worth $18,405,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of CMI. Brighton Jones LLC increased its stake in shares of Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after purchasing an additional 83 shares in the last quarter. MML Investors Services LLC increased its stake in shares of Cummins by 3.2% during the fourth quarter. MML Investors Services LLC now owns 16,663 shares of the company's stock worth $5,809,000 after purchasing an additional 509 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC increased its stake in shares of Cummins by 9.3% during the fourth quarter. Kayne Anderson Rudnick Investment Management LLC now owns 8,847 shares of the company's stock worth $3,084,000 after purchasing an additional 752 shares in the last quarter. Transce3nd LLC purchased a new stake in shares of Cummins during the fourth quarter worth about $50,000. Finally, Tower Research Capital LLC TRC increased its stake in shares of Cummins by 24.6% during the fourth quarter. Tower Research Capital LLC TRC now owns 6,210 shares of the company's stock worth $2,165,000 after purchasing an additional 1,225 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Up 2.0%

Shares of Cummins stock traded up $7.8750 during mid-day trading on Friday, hitting $402.0750. The stock had a trading volume of 775,198 shares, compared to its average volume of 935,740. The firm has a 50-day moving average of $355.04 and a two-hundred day moving average of $334.53. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. 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 firm has a market cap of $55.40 billion, a P/E ratio of 18.90, a price-to-earnings-growth ratio of 1.90 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly 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. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the prior year, the company posted $5.26 EPS. The business's revenue for the quarter was down 1.7% on a year-over-year basis. Sell-side analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company 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 positive change 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 annualized dividend and a dividend yield of 2.0%. Cummins's dividend payout ratio is currently 34.23%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CMI. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. JPMorgan Chase & Co. upped their price objective on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Citigroup upped their price objective on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Finally, Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday. 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 company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $370.83.

Insiders Place Their Bets

In related news, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were 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 owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the 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 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 position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 24,179 shares of company stock worth $9,636,871. 0.41% of the stock is currently owned by company insiders.

Cummins Company 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.