Man Group plc Acquires Shares of 187,497 Cummins Inc. $CMI

Key Points

• Man Group plc acquired 187,497 Cummins shares worth approximately $133.7 million, giving it a 0.14% stake. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings of $6.73 per share fell short of analysts’ $7.21 estimate.
• The company raised its quarterly dividend to $2.20 from $2.00, implying an annualized payout of $8.80 and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Man Group plc bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 187,497 shares of the company's stock, valued at approximately $133,725,000. Man Group plc owned approximately 0.14% of Cummins at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Persistent Asset Partners Ltd purchased a new stake in Cummins during the 2nd quarter worth approximately $26,000. Elevation Wealth Partners LLC boosted its stake in shares of Cummins by 91.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after buying an additional 22 shares during the last quarter. Cedar Mountain Advisors LLC boosted its stake in shares of Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares during the last quarter. Activest Wealth Management grew its position in shares of Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares in the last quarter. Finally, Wellington Shields Capital Management LLC acquired a new stake in shares of Cummins during the fourth quarter worth approximately $27,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Performance

CMI stock opened at $573.19 on Wednesday. The stock's 50 day simple moving average is $656.14 and its 200 day simple moving average is $628.10. Cummins Inc. has a 12-month low of $389.52 and a 12-month high of $737.76. The firm has a market cap of $78.91 billion, a P/E ratio of 29.29, a P/E/G ratio of 1.36 and a beta of 1.24. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. During the same period in the prior year, the firm earned $6.43 EPS. The business's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts predict that Cummins Inc. will post 30.06 EPS for the current year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a $2.20 dividend. This is a boost from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.5%. Cummins's dividend payout ratio (DPR) is presently 44.97%.

Analysts Set New Price Targets

Several analysts recently issued reports on CMI shares. JPMorgan Chase & Co. upped their price target on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. CICC Research assumed coverage on shares of Cummins in a report on Sunday. They set an "outperform" rating for the company. Barclays boosted their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Argus upped their target price on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Finally, Raymond James Financial increased their price target on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Twelve equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $745.64.

Insider Buying and Selling at Cummins

In related news, VP Earl Newsome sold 698 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the sale, the vice president owned 4,479 shares of the company's stock, valued at $2,562,973.38. This represents a 13.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.30% of the stock is currently owned by corporate insiders.

Cummins 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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