Fox Run Management L.L.C. Takes Position in Cummins Inc. (NYSE:CMI)

Key Points

• Fox Run Management L.L.C. invested approximately $2.75 million in Cummins Inc., acquiring 8,770 shares, making it the firm's 10th largest position.
• Cummins recently reported a $6.43 EPS for the quarter, exceeding estimates, with revenues of $8.64 billion, slightly down from the previous year.
• The company announced a quarterly dividend increase to $2.00 per share, up from $1.82, resulting in an annualized yield of 2.0%.

Fox Run Management L.L.C. bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 8,770 shares of the company's stock, valued at approximately $2,749,000. Cummins comprises about 0.4% of Fox Run Management L.L.C.'s investment portfolio, making the stock its 10th biggest holding.

Several other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in shares of Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after purchasing an additional 321,823 shares during the period. Northern Trust Corp boosted its holdings in shares of 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 purchasing an additional 246,807 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Cummins by 6.5% in the fourth 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 during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Cummins by 0.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,585,802 shares of the company's stock valued at $552,820,000 after purchasing an additional 12,722 shares during the period. Finally, Royal Bank of Canada boosted its holdings in shares of Cummins by 3.7% in the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock valued at $443,169,000 after purchasing an additional 44,907 shares during the period. 83.46% of the stock is owned by institutional investors.

Cummins Stock Down 1.6%

Shares of CMI traded down $6.35 during midday trading on Friday, hitting $398.45. 701,253 shares of the company's stock traded hands, compared to its average volume of 1,050,250. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $408.38. The firm's fifty day moving average is $347.51 and its 200-day moving average is $332.91. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $54.90 billion, a price-to-earnings ratio of 18.73, a price-to-earnings-growth ratio of 1.95 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its 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. The company had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The firm's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the business posted $5.26 EPS. As a group, sell-side analysts anticipate that Cummins Inc. will post 22.54 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 4th. Shareholders of record on Friday, August 22nd will be paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is 34.23%.

Insider Buying and Selling

In other Cummins news, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the transaction, the vice president owned 7,693 shares in the company, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Mark Andrew Smith sold 6,500 shares of Cummins stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer owned 31,582 shares of the company's stock, valued at $12,790,710. The trade was a 17.07% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 22,872 shares of company stock worth $9,107,105. Corporate insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently issued reports on CMI shares. Morgan Stanley boosted their price target on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a report on Monday, August 11th. Barclays upped their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Citigroup upped their target price on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Finally, Truist Financial upped their target price on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $370.83.

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.