Connor Clark & Lunn Investment Management Ltd. Acquires New Shares in Cummins Inc. (NYSE:CMI)

Key Points

• Connor Clark & Lunn Investment Management Ltd. purchased 28,220 shares of Cummins Inc., valued at approximately $8.85 million, indicating strong interest from institutional investors.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00 per share, representing an annualized yield of 2.1% based on the new dividend.
• Despite reporting earnings of $6.43 per share, which exceeded estimates, Cummins experienced a 1.7% decline in quarterly revenue compared to the previous year, signaling potential revenue challenges.

Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 28,220 shares of the company's stock, valued at approximately $8,845,000.

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Fiduciary Trust Co boosted its position in Cummins by 1.2% in the fourth quarter. Fiduciary Trust Co now owns 2,456 shares of the company's stock valued at $856,000 after buying an additional 28 shares in the last quarter. Bank of Jackson Hole Trust boosted its position in Cummins by 1.2% in the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock valued at $887,000 after buying an additional 33 shares in the last quarter. Scotia Capital Inc. boosted its position in Cummins by 0.5% in the first quarter. Scotia Capital Inc. now owns 6,714 shares of the company's stock valued at $2,104,000 after buying an additional 34 shares in the last quarter. Ascent Group LLC boosted its position in Cummins by 2.7% in the fourth quarter. Ascent Group LLC now owns 1,417 shares of the company's stock valued at $494,000 after buying an additional 37 shares in the last quarter. Finally, Central Pacific Bank Trust Division boosted its position in Cummins by 5.0% in the first quarter. Central Pacific Bank Trust Division now owns 815 shares of the company's stock valued at $255,000 after buying an additional 39 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Down 1.6%

CMI traded down $6.35 during midday trading on Friday, hitting $398.45. The company had a trading volume of 701,253 shares, compared to its average volume of 1,050,250. Cummins Inc. has a 52 week low of $260.02 and a 52 week 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 company has a market capitalization of $54.90 billion, a price-to-earnings ratio of 18.73, a PEG ratio of 1.97 and a beta of 1.02. The stock's 50 day moving average price is $347.51 and its 200 day moving average price is $333.05.

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. The firm had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business's revenue was down 1.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.26 earnings per share. On average, research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

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

Insider Buying and Selling at Cummins

In other news, VP Jennifer Mary Bush sold 520 shares of Cummins stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $388.13, for a total transaction of $201,827.60. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at $5,872,406.90. This trade represents a 3.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the transaction, the vice president owned 7,693 shares of the company's stock, valued at $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 have sold 22,872 shares of company stock valued at $9,107,105 over the last three months. Corporate insiders own 0.41% of the company's stock.

Wall Street Analyst Weigh In

CMI has been the topic of a number of research analyst reports. Robert W. Baird raised their target price on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and raised their price target for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Morgan Stanley lifted their target price on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 6th. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 6th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $370.83.

About Cummins

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.