Board of the Pension Protection Fund Increases Position in Cummins Inc. $CMI

Key Points

• The Board of the Pension Protection Fund increased its stake in Cummins Inc. by 414.3% in the second quarter, resulting in ownership of 3,600 shares valued at approximately $1.18 million.
• Cummins recently announced a quarterly dividend of $2.00 per share, an increase from the previous dividend, giving an annualized yield of 1.9%.
• Analysts are optimistic about Cummins's future performance, with several firms upgrading their ratings, including Melius Research, which set a target price of $500.00.

Board of the Pension Protection Fund grew its stake in Cummins Inc. (NYSE:CMI - Free Report) by 414.3% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,600 shares of the company's stock after purchasing an additional 2,900 shares during the period. Board of the Pension Protection Fund's holdings in Cummins were worth $1,179,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in Cummins by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after buying an additional 321,823 shares in the last quarter. Northern Trust Corp grew its holdings in shares of 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 purchasing an additional 22,202 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Cummins by 0.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock valued at $512,343,000 after buying an additional 8,487 shares during the period. Raymond James Financial Inc. grew its stake in shares of Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after buying an additional 817,384 shares during the period. Finally, Invesco Ltd. grew its stake in shares of Cummins by 11.6% in the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after buying an additional 126,362 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on CMI. Melius upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research report on Wednesday, September 3rd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Melius Research raised shares of 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, September 3rd. Zacks Research raised shares of Cummins from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Finally, Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $397.43.

Cummins Trading Down 3.1%

NYSE CMI opened at $413.28 on Friday. The firm has a 50 day simple moving average of $407.21 and a 200-day simple moving average of $349.52. 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 one year low of $260.02 and a one year high of $440.51. The firm has a market cap of $56.95 billion, a price-to-earnings ratio of 19.43, a PEG ratio of 2.00 and a beta of 1.04.

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, 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 analyst estimates of $8.45 billion. During the same quarter last year, the firm posted $5.26 earnings per share. The business's revenue for the quarter was down 1.7% compared to the same quarter last year. Equities research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. Cummins's dividend payout ratio (DPR) is 37.61%.

Insider Transactions at Cummins

In other news, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president owned 955 shares in the company, valued at approximately $384,158.30. This trade represents a 66.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the transaction, the director owned 5,227 shares of the company's stock, valued at $2,118,659.91. The trade was a 20.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 43,119 shares of company stock valued at $17,674,285 in the last 90 days. 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.

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