Cummins Inc. (NYSE:CMI) Shares Bought by Mitsubishi UFJ Asset Management Co. Ltd.

Key Points

• Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in Cummins Inc. by 13.4%, owning approximately 260,392 shares valued at $81.6 million as of the latest SEC filing.
• Wall Street analysts have generally upgraded their outlook on Cummins, with target price increases from various financial institutions, including Citigroup and Truist Financial, reflecting a bullish sentiment.
• Cummins has announced a quarterly dividend of $2.00 per share, a raise from the previous $1.82, resulting in an annualized yield of 2.1% for shareholders.

Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 13.4% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 260,392 shares of the company's stock after purchasing an additional 30,797 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned about 0.19% of Cummins worth $81,636,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in CMI. Olde Wealth Management LLC purchased a new position in shares of Cummins in the 1st quarter worth $30,000. Capital A Wealth Management LLC purchased a new position in shares of Cummins in the 4th quarter worth $32,000. Opal Wealth Advisors LLC purchased a new position in shares of Cummins in the 1st quarter worth $37,000. Richardson Financial Services Inc. purchased a new position in shares of Cummins in the 1st quarter worth $39,000. Finally, Costello Asset Management INC purchased a new position in shares of Cummins in the 1st quarter worth $40,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Up 0.6%

Shares of NYSE CMI traded up $2.30 during midday trading on Wednesday, reaching $401.36. 251,371 shares of the company's stock were exchanged, compared to its average volume of 883,789. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $401.49. The stock has a market capitalization of $55.30 billion, a PE ratio of 18.88, a price-to-earnings-growth ratio of 1.89 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The business's fifty day moving average price is $342.75 and its two-hundred day moving average price is $331.81.

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

Cummins Increases Dividend

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

Insider Buying and Selling

In related news, VP Jennifer Mary Bush sold 520 shares of Cummins stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $388.13, for a total value of $201,827.60. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at approximately $5,872,406.90. This trade represents a 3.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value of $1,887,571.50. Following the completion of the transaction, the vice president owned 7,693 shares of the company's stock, valued at $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.41% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on CMI shares. Jefferies Financial Group raised Cummins to a "hold" rating in a research report on Monday. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday. Morgan Stanley raised their price objective on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and raised their price objective for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Evercore ISI cut their price objective on Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and six have given a buy rating to the company. According to MarketBeat, Cummins has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Company 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.