Daiichi Life Insurance Co. Ltd. Makes New $5.02 Million Investment in Cummins Inc. $CMI

Key Points

• Daiichi Life Insurance acquired 7,042 shares of Cummins, worth approximately $5.02 million, during the second quarter. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 fell short of the $7.21 consensus forecast.
• The company raised its quarterly dividend to $2.20 per share, equivalent to an annualized $8.80 payout and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Daiichi Life Insurance Co. Ltd. bought a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 7,042 shares of the company's stock, valued at approximately $5,022,000.

Several other institutional investors and hedge funds also recently made changes to their positions in CMI. Vanguard Group Inc. grew its position in shares of Cummins by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after buying an additional 98,544 shares in the last quarter. BlackRock Inc. acquired a new stake in Cummins in the second quarter valued at $8,204,241,000. State Street Corp boosted its stake in Cummins by 0.8% during the 4th quarter. State Street Corp now owns 6,509,852 shares of the company's stock valued at $3,322,954,000 after acquiring an additional 49,628 shares during the last quarter. Geode Capital Management LLC boosted its stake in Cummins by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock valued at $1,822,534,000 after acquiring an additional 35,286 shares during the last quarter. Finally, Fisher Asset Management LLC boosted its stake in Cummins by 1.3% during the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock valued at $1,741,004,000 after acquiring an additional 43,722 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Performance

Shares of NYSE CMI opened at $587.87 on Friday. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The firm's 50-day moving average price is $660.86 and its two-hundred day moving average price is $628.31. Cummins Inc. has a 52-week low of $389.52 and a 52-week high of $737.76. The stock has a market capitalization of $80.93 billion, a P/E ratio of 30.04, a P/E/G ratio of 1.40 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period last year, the company posted $6.43 earnings per share. As a group, sell-side analysts forecast that Cummins Inc. will post 30.06 earnings per share for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is currently 40.88%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Morgan Stanley boosted their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. UBS Group reduced their price target on shares of Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. Evercore reiterated an "outperform" rating and issued a $845.00 price target on shares of Cummins in a research note on Monday, May 11th. Weiss Ratings raised Cummins from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, August 17th. Finally, Truist Financial set a $894.00 price objective on Cummins in a research note on Wednesday, August 5th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $745.64.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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