Dark Forest Capital Management LP Acquires New Stake in Cummins Inc. $CMI

Key Points

• Dark Forest Capital Management LP has invested $4.36 million in Cummins Inc., acquiring 13,896 shares, as part of a trend where numerous institutional investors are increasing their stakes in the company.
• Wall Street analysts have raised ratings and price targets for Cummins, with Goldman Sachs increasing its target from $410.00 to $431.00, reflecting positive sentiment towards the company's growth prospects.
• Cummins recently increased its dividend to $2.00 per share, up from $1.82, with a dividend yield of 2.0%, indicating a commitment to returning value to shareholders.

Dark Forest Capital Management LP bought a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 13,896 shares of the company's stock, valued at approximately $4,356,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Capital A Wealth Management LLC acquired a new position in shares of Cummins in the fourth quarter valued at approximately $32,000. Olde Wealth Management LLC bought a new stake in shares of Cummins in the first quarter valued at approximately $30,000. Accredited Wealth Management LLC bought a new stake in shares of Cummins in the first quarter valued at approximately $31,000. Opal Wealth Advisors LLC bought a new stake in shares of Cummins in the first quarter valued at approximately $37,000. Finally, Richardson Financial Services Inc. bought a new stake in shares of Cummins in the first quarter valued at approximately $39,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling

In other news, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares in the company, valued at approximately $12,790,710. This represents a 17.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the transaction, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock worth $10,385,075 in the last ninety days. Insiders own 0.41% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Barclays boosted their price target on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a research note on Monday, August 11th. Finally, Truist Financial boosted 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. Nine research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $389.29.

Cummins Price Performance

NYSE CMI traded down $0.80 on Friday, hitting $400.13. 864,159 shares of the company's stock were exchanged, compared to its average volume of 706,473. The stock has a 50-day moving average of $370.88 and a 200-day moving average of $336.36. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. The stock has a market cap of $55.13 billion, a price-to-earnings ratio of 18.81, a P/E/G ratio of 1.94 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly 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 company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the prior year, the company earned $5.26 EPS. Cummins's revenue was down 1.7% compared to the same quarter last year. Analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is currently 37.61%.

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.