Public Sector Pension Investment Board Reduces Stake in Cummins Inc. (NYSE:CMI)

Key Points

• The Public Sector Pension Investment Board has reduced its holdings in Cummins Inc. by 32.7%, selling 111,784 shares to end up with 230,240 shares, valued at approximately $72.17 million.
• Several analysts have upgraded Cummins' price targets, with Citigroup raising it from $380 to $425 and The Goldman Sachs Group increasing it from $410 to $431, resulting in a consensus rating of "Hold" and an average price target of $370.83.
• Cummins announced a quarterly dividend of $2.00, up from $1.82, reflecting a new annualized dividend of $8.00 and a yield of 2.1%.

Public Sector Pension Investment Board reduced its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 32.7% during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 230,240 shares of the company's stock after selling 111,784 shares during the quarter. Public Sector Pension Investment Board owned 0.17% of Cummins worth $72,166,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after buying an additional 321,823 shares in the last quarter. Northern Trust Corp boosted its holdings in Cummins by 15.1% in the fourth quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock valued at $656,418,000 after acquiring an additional 246,807 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Cummins by 6.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock valued at $566,856,000 after purchasing an additional 99,009 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Cummins by 0.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,585,802 shares of the company's stock valued at $552,820,000 after buying an additional 12,722 shares during the period. Finally, Royal Bank of Canada raised its stake in Cummins by 3.7% in the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock worth $443,169,000 after buying an additional 44,907 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Insider Transactions at Cummins

In other news, Director John H. Stone acquired 1,000 shares of Cummins stock in a transaction dated Friday, May 16th. The stock was purchased at an average cost of $332.08 per share, with a total value of $332,080.00. Following the completion of the purchase, the director directly owned 2,441 shares in the company, valued at approximately $810,607.28. This trade represents a 69.40% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Jennifer Mary Bush sold 520 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $388.13, for a total value of $201,827.60. Following the completion of the sale, the vice president owned 15,130 shares of the company's stock, valued at $5,872,406.90. The trade was a 3.32% decrease in their position. The disclosure for this sale can be found here. Insiders sold 17,870 shares of company stock valued at $7,091,899 over the last 90 days. 0.41% of the stock is owned by corporate insiders.

Cummins Stock Down 0.4%

Shares of NYSE:CMI traded down $1.55 during trading on Thursday, reaching $405.25. 1,166,591 shares of the stock traded hands, compared to its average volume of 890,566. The stock has a market cap of $55.84 billion, a P/E ratio of 19.05, a price-to-earnings-growth ratio of 1.94 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 stock has a 50-day moving average of $344.43 and a two-hundred day moving average of $332.33. 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 posted its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping 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 analyst estimates of $8.45 billion. During the same quarter last year, the company earned $5.26 EPS. The company's quarterly revenue was down 1.7% compared to the same quarter last year. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business 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. The ex-dividend date is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is presently 34.23%.

Analyst Upgrades and Downgrades

CMI has been the topic of several research reports. Barclays lifted their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and upped their price target for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Robert W. Baird raised their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. JPMorgan Chase & Co. upped their target price on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 6th. Finally, Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, Cummins presently has a consensus rating of "Hold" and a consensus price target of $370.83.

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.