Bank of Nova Scotia Buys 22,039 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• The Bank of Nova Scotia increased its position in Cummins Inc. by 46.2%, owning 69,743 shares valued at approximately $21.86 million after purchasing an additional 22,039 shares in the first quarter.
• Cummins recently announced a quarterly dividend increase from $1.82 to $2.00 per share, representing an annualized dividend of $8.00 and a yield of 2.2%.
• The company reported $5.96 earnings per share for its latest quarter, exceeding expectations, despite experiencing a 2.7% year-over-year decline in revenue.

Bank of Nova Scotia grew its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 46.2% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 69,743 shares of the company's stock after acquiring an additional 22,039 shares during the period. Bank of Nova Scotia owned 0.05% of Cummins worth $21,860,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in CMI. Olde Wealth Management LLC bought a new position in shares of Cummins in the first quarter worth $30,000. Capital A Wealth Management LLC bought a new position in shares of Cummins in the fourth quarter worth $32,000. Opal Wealth Advisors LLC bought a new position in shares of Cummins in the first quarter worth $37,000. Richardson Financial Services Inc. bought a new position in shares of Cummins in the first quarter worth $39,000. Finally, Ritter Daniher Financial Advisory LLC DE increased its holdings in shares of Cummins by 316.7% in the fourth quarter. Ritter Daniher Financial Advisory LLC DE now owns 125 shares of the company's stock worth $44,000 after purchasing an additional 95 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

CMI has been the topic of a number of research analyst reports. Truist Financial reduced their target price on Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a research note on Tuesday, April 8th. Morgan Stanley increased their target price on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday, May 6th. Citigroup reissued a "buy" rating and issued a $360.00 target price (up previously from $350.00) on shares of Cummins in a research note on Tuesday, June 24th. JPMorgan Chase & Co. increased their target price on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Finally, UBS Group cut Cummins from a "buy" rating to a "sell" rating and reduced their target price for the company from $400.00 to $240.00 in a research note on Monday, April 7th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company's stock. Based on data from MarketBeat, Cummins has a consensus rating of "Hold" and an average target price of $361.92.

Cummins Stock Up 3.3%

CMI traded up $11.99 on Tuesday, hitting $373.58. The company had a trading volume of 1,898,926 shares, compared to its average volume of 957,928. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.34 and a quick ratio of 0.81. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $387.90. The stock has a fifty day simple moving average of $335.18 and a 200-day simple moving average of $330.79. The firm has a market capitalization of $51.46 billion, a P/E ratio of 18.59, a P/E/G ratio of 2.01 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued 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. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The business had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same period last year, the business posted $5.26 earnings per share. Cummins's quarterly revenue was down 1.7% compared to the same quarter last year. As a group, equities analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be paid a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's payout ratio is 36.22%.

Insider Buying and Selling at Cummins

In other Cummins news, Director John H. Stone bought 1,000 shares of the firm's stock in a transaction on Friday, May 16th. The stock was acquired at an average price of $332.08 per share, with a total value of $332,080.00. Following the completion of the purchase, the director owned 2,441 shares of the company's stock, valued at approximately $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate 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.