Forsta AP Fonden Raises Stock Position in Cummins Inc. (NYSE:CMI)

Key Points

• Forsta AP Fonden increased its stake in Cummins Inc. by 2.2%, owning 51,740 shares valued at $16.2 million.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, reflecting an annual yield of 2.1%.
• Analysts have mixed views on Cummins, with the stock receiving seven hold ratings, five buy ratings, and one sell rating, showing a current average rating of "Hold."

Forsta AP Fonden raised its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 2.2% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 51,740 shares of the company's stock after purchasing an additional 1,100 shares during the period. Forsta AP Fonden's holdings in Cummins were worth $16,217,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Olde Wealth Management LLC bought a new position in shares of Cummins in the 1st quarter worth about $30,000. Capital A Wealth Management LLC acquired a new position in Cummins during the 4th quarter valued at about $32,000. Opal Wealth Advisors LLC acquired a new position in Cummins during the 1st quarter valued at about $37,000. Richardson Financial Services Inc. acquired a new position in Cummins during the 1st quarter valued at about $39,000. Finally, Costello Asset Management INC purchased a new position in shares of Cummins in the 1st quarter worth approximately $40,000. 83.46% of the stock is owned by institutional investors.

Insider Buying and Selling at Cummins

In other news, Director John H. Stone purchased 1,000 shares of the business's stock in a transaction dated Friday, May 16th. The shares were purchased at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the acquisition, the director directly owned 2,441 shares in the company, valued at $810,607.28. This represents a 69.40% increase in their position. The purchase 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.

Cummins Trading Up 0.8%

NYSE CMI traded up $2.96 during trading on Friday, hitting $387.57. 932,746 shares of the company's stock traded hands, compared to its average volume of 1,058,100. The firm has a market cap of $53.40 billion, a P/E ratio of 18.22, a PEG ratio of 1.88 and a beta of 1.02. The stock has a fifty day moving average of $339.84 and a two-hundred day moving average of $331.20. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $391.56.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same period in the prior year, the firm earned $5.26 earnings per share. Cummins's revenue was down 1.7% on a year-over-year basis. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 EPS for the current 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 34.23%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Evercore ISI cut their target price on Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Barclays boosted their target price on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Morgan Stanley boosted their target price on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Citigroup boosted their target price on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $370.83.

Cummins 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.