Cummins Inc. $CMI Shares Acquired by Wedge Capital Management L L P NC

Key Points

• Wedge Capital Management L L P NC increased its stake in Cummins Inc. by 4.6%, holding 31,580 shares valued at over $10 million, indicating growing institutional interest in the company.
• Cummins recently declared a quarterly dividend of $2.00, boosting its annualized dividend to $8.00, representing a yield of 1.9%, which reflects the company's strong financial position.
• Following recent analyst upgrades, Cummins has a consensus rating of "Moderate Buy" with a target price of approximately $389.29, suggesting positive market sentiment.

Wedge Capital Management L L P NC boosted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 4.6% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 31,580 shares of the company's stock after buying an additional 1,382 shares during the quarter. Wedge Capital Management L L P NC's holdings in Cummins were worth $10,342,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Cummins by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after purchasing an additional 321,823 shares during the period. Northern Trust Corp increased its stake in Cummins by 1.2% in the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $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 increased its stake in shares of Cummins by 0.5% during the first 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. boosted its position in shares of Cummins by 152.3% during the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after purchasing an additional 817,384 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of Cummins by 11.6% during the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after purchasing an additional 126,362 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on CMI. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Barclays upped their price objective on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Robert W. Baird increased their price target on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Truist Financial increased their price target on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Finally, Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research note on Wednesday, September 3rd. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $393.57.

Cummins Price Performance

NYSE CMI traded down $0.84 during trading hours on Tuesday, reaching $424.01. The company's stock had a trading volume of 386,863 shares, compared to its average volume of 872,611. The firm has a market capitalization of $58.42 billion, a price-to-earnings ratio of 19.96, a P/E/G ratio of 2.05 and a beta of 1.02. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $432.50. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The company's 50-day moving average is $388.30 and its two-hundred day moving average is $339.96.

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

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend 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 currently 37.61%.

Insiders Place Their Bets

In other news, VP Robert Enright sold 1,860 shares of the company's stock in a transaction that occurred on 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 sale, the vice president directly owned 955 shares in the company, valued at $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The stock was 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 ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 35,119 shares of company stock valued at $14,159,885. Insiders own 0.41% of the company's stock.

Cummins Company 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.