Canada Pension Plan Investment Board Raises Holdings in Cummins Inc. $CMI

Key Points

• The Canada Pension Plan Investment Board increased its stake in Cummins Inc. by 73.2%, owning 182,873 shares worth approximately $57.32 million as of its latest SEC filing.
• Cummins reported $6.43 EPS for the quarter, exceeding analysts' expectations, with a total revenue of $8.64 billion, although this represented a 1.7% decline year-over-year.
• The company announced a quarterly dividend increase to $2.00 per share, providing an annualized rate of $8.00, which reflects a growing commitment to returning value to shareholders.

Canada Pension Plan Investment Board grew its position in Cummins Inc. (NYSE:CMI - Free Report) by 73.2% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 182,873 shares of the company's stock after purchasing an additional 77,264 shares during the quarter. Canada Pension Plan Investment Board owned approximately 0.13% of Cummins worth $57,320,000 as of its most recent filing with the SEC.

A number of other institutional investors also recently modified their holdings of the company. State of Wyoming bought a new stake in shares of Cummins in the 1st quarter valued at $50,000. Oarsman Capital Inc. raised its holdings in Cummins by 16.0% during the first quarter. Oarsman Capital Inc. now owns 5,079 shares of the company's stock worth $1,592,000 after buying an additional 700 shares during the last quarter. OMERS ADMINISTRATION Corp raised its holdings in Cummins by 13.3% during the first quarter. OMERS ADMINISTRATION Corp now owns 9,855 shares of the company's stock worth $3,089,000 after buying an additional 1,157 shares during the last quarter. Orion Investment Co raised its holdings in shares of Cummins by 1.1% in the first quarter. Orion Investment Co now owns 22,160 shares of the company's stock valued at $6,946,000 after purchasing an additional 248 shares during the last quarter. Finally, Cape ANN Savings Bank raised its holdings in shares of Cummins by 2.6% in the first quarter. Cape ANN Savings Bank now owns 3,185 shares of the company's stock valued at $998,000 after purchasing an additional 80 shares during the last quarter. 83.46% of the stock is owned by institutional investors.

Insider Transactions at Cummins

In related news, VP Robert Enright sold 1,860 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were 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 directly owned 955 shares of the company's stock, valued at approximately $384,158.30. This trade represents a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction 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 completion of the sale, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 26,039 shares of company stock valued at $10,385,075 in the last 90 days. Company insiders own 0.41% of the company's stock.

Cummins Stock Performance

CMI traded down $3.82 during midday trading on Tuesday, hitting $394.62. 636,066 shares of the company traded hands, compared to its average volume of 824,873. 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 capitalization of $54.37 billion, a PE ratio of 18.55, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The company's 50-day moving average is $366.41 and its 200 day moving average is $335.64. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38.

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

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's payout ratio is 37.61%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Citigroup increased their target price on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Finally, Barclays upped their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Seven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Cummins presently has an average rating of "Hold" and a consensus target price of $370.83.

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.