California State Teachers Retirement System Purchases 148,034,528 Shares of Cummins Inc. $CMI

Key Points

• California State Teachers Retirement System dramatically increased its Cummins stake by purchasing 148.0 million additional shares in the second quarter, bringing its reported holdings to 148.24 million shares valued at approximately $105.7 billion.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings of $6.73 per share fell short of the $7.21 consensus forecast.
• The company raised its quarterly dividend to $2.20 per share, or $8.80 annually, producing a 1.6% yield; analysts maintain a “Moderate Buy” consensus with an average price target of $764.54.

California State Teachers Retirement System increased its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 71,801.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 148,240,699 shares of the company's stock after purchasing an additional 148,034,528 shares during the quarter. California State Teachers Retirement System owned approximately 107.69% of Cummins worth $105,726,749,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Persistent Asset Partners Ltd purchased a new position in shares of Cummins during the second quarter valued at approximately $26,000. Elevation Wealth Partners LLC boosted its holdings in Cummins by 91.7% in the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after acquiring an additional 22 shares in the last quarter. Cedar Mountain Advisors LLC increased its position in Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after purchasing an additional 45 shares during the period. Wellington Shields Capital Management LLC purchased a new position in Cummins during the 4th quarter valued at $27,000. Finally, Key Financial Inc raised its holdings in Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after purchasing an additional 20 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Cummins Trading Up 0.1%

Shares of NYSE CMI opened at $561.44 on Monday. Cummins Inc. has a 1 year low of $390.11 and a 1 year high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The firm has a 50-day moving average of $632.30 and a 200 day moving average of $626.67. The stock has a market cap of $77.29 billion, a P/E ratio of 28.69, a price-to-earnings-growth ratio of 1.52 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter last year, the company posted $6.43 EPS. Cummins's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, sell-side analysts expect that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were paid a $2.20 dividend. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is currently 44.97%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Morgan Stanley boosted their price target on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $700.00 price objective on shares of Cummins in a research report on Wednesday, August 5th. Evercore reiterated an "outperform" rating and set a $845.00 target price on shares of Cummins in a report on Monday, May 11th. Finally, UBS Group decreased their target price on Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $764.54.

Insiders Place Their Bets

In other Cummins news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares in the company, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.30% of the stock is currently owned by company insiders.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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