Employees Provident Fund Board Takes $39.71 Million Position in Cummins Inc. $CMI

Key Points

• Employees Provident Fund Board opened a new position in Cummins during the fourth quarter, buying 77,800 shares worth about $39.7 million.
• Cummins posted better-than-expected quarterly results, with EPS of $6.15 versus $5.63 expected and revenue of $8.40 billion, up 2.7% year over year.
• The company also paid a quarterly dividend of $2.00 per share, equivalent to an annualized $8.00 payout and a 1.1% yield, while analysts currently rate the stock a Moderate Buy with an average target price of $731.86.

Employees Provident Fund Board acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 77,800 shares of the company's stock, valued at approximately $39,713,000. Employees Provident Fund Board owned about 0.06% of Cummins as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CMI. Thompson Investment Management Inc. acquired a new stake in shares of Cummins during the 4th quarter worth about $26,000. Activest Wealth Management lifted its position in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after buying an additional 43 shares during the last quarter. Wellington Shields Capital Management LLC acquired a new position in Cummins in the fourth quarter valued at about $27,000. Birchwood Financial Partners Inc. purchased a new position in Cummins during the fourth quarter worth about $28,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Cummins during the fourth quarter valued at about $28,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Price Performance

Shares of NYSE CMI opened at $716.50 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The company has a market cap of $98.87 billion, a price-to-earnings ratio of 37.18, a price-to-earnings-growth ratio of 1.75 and a beta of 1.23. The stock's 50-day moving average is $663.00 and its two-hundred day moving average is $590.68. Cummins Inc. has a 1-year low of $307.90 and a 1-year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the business posted $5.96 EPS. Analysts forecast that Cummins Inc. will post 29.31 EPS for the current fiscal year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insiders Place Their Bets

In other news, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the sale, the vice president directly owned 8,316 shares of the company's stock, valued at approximately $5,912,010.72. The trade was a 8.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Brett Michael Merritt sold 701 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the transaction, the insider directly owned 10,404 shares in the company, valued at $7,165,755. This trade represents a 6.31% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on CMI shares. Wells Fargo & Company boosted their price target on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research note on Wednesday. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. lifted their target price on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Citigroup boosted their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $731.86.

Cummins Company Profile

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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