IFM Investors Pty Ltd Raises Stock Position in Cummins Inc. $CMI

Key Points

• IFM Investors Pty Ltd increased its stake in Cummins Inc. by 4.5%, acquiring an additional 1,202 shares, bringing its total holdings to $9,158,000.
• Insider trading activity shows significant sales, including CFO Mark Andrew Smith selling 6,500 shares at approximately $405.00 per share, resulting in a total value of about $2.63 million.
• Cummins recently raised its quarterly dividend to $2.00 per share, representing a new annualized yield of 1.9%, up from the previous $1.82 per share.

IFM Investors Pty Ltd increased its position in Cummins Inc. (NYSE:CMI - Free Report) by 4.5% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 27,964 shares of the company's stock after purchasing an additional 1,202 shares during the quarter. IFM Investors Pty Ltd's holdings in Cummins were worth $9,158,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also bought and sold shares of CMI. Olde Wealth Management LLC purchased a new position in Cummins during the first quarter valued at $30,000. Accredited Wealth Management LLC purchased a new position in shares of Cummins in the 1st quarter worth about $31,000. Capital A Wealth Management LLC purchased a new position in shares of Cummins in the 4th quarter worth about $32,000. Opal Wealth Advisors LLC purchased a new position in Cummins in the first quarter worth about $37,000. Finally, Richardson Financial Services Inc. purchased a new position in Cummins in the first quarter worth about $39,000. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Citigroup boosted their price objective on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Wells Fargo & Company raised Cummins to an "overweight" rating in a research report on Monday, August 11th. Finally, Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, September 3rd. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Cummins Stock Performance

Shares of NYSE CMI traded up $1.69 during midday trading on Monday, hitting $425.33. 528,362 shares of the company's stock traded hands, compared to its average volume of 873,752. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $428.96. The stock has a market capitalization of $58.61 billion, a price-to-earnings ratio of 20.00, a price-to-earnings-growth ratio of 2.05 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The firm has a fifty day moving average of $386.60 and a 200 day moving average of $339.37.

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, topping the consensus estimate of $5.21 by $1.22. The firm had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.Cummins's revenue was down 1.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.26 EPS. On average, analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company 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. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 1.9%. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 37.61%.

Insider Activity at Cummins

In other Cummins news, CFO Mark Andrew Smith sold 1,580 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $419.00, for a total transaction of $662,020.00. Following the sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $13,232,858. This trade represents a 4.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the sale, the vice president owned 20,738 shares in the company, valued at approximately $8,354,925.44. The trade was a 19.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,119 shares of company stock worth $14,159,885 in the last 90 days. Insiders own 0.41% of the company's stock.

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.