OMERS ADMINISTRATION Corp Acquires 2,084 Shares of Cummins Inc. $CMI

Key Points

• OMERS Administration increased its Cummins stake by 24.5% in the first quarter, purchasing 2,084 shares and ending the period with 10,599 shares valued at approximately $5.7 million.
• Cummins reported quarterly earnings of $6.15 per share, exceeding estimates, while revenue rose 2.7% year over year to $8.40 billion. The company also raised its quarterly dividend from $2.00 to $2.20 per share.
• Analyst sentiment remains favorable, with 11 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $740.07, although insiders sold roughly $9.38 million in stock over the past three months.

OMERS ADMINISTRATION Corp grew its position in Cummins Inc. (NYSE:CMI - Free Report) by 24.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 10,599 shares of the company's stock after purchasing an additional 2,084 shares during the period. OMERS ADMINISTRATION Corp's holdings in Cummins were worth $5,702,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in CMI. Juno Financial Group LLC bought a new position in Cummins in the 4th quarter valued at $883,000. Truist Financial Corp boosted its holdings in shares of Cummins by 4.8% in the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company's stock worth $32,671,000 after buying an additional 2,951 shares during the last quarter. Smith Salley Wealth Management grew its position in Cummins by 1,381.8% during the fourth quarter. Smith Salley Wealth Management now owns 21,768 shares of the company's stock valued at $11,111,000 after buying an additional 20,299 shares during the period. Westfield Capital Management Co. LP bought a new position in Cummins during the fourth quarter valued at about $7,797,000. Finally, Comprehensive Financial Consultants Institutional Inc. increased its holdings in Cummins by 643.0% during the fourth quarter. Comprehensive Financial Consultants Institutional Inc. now owns 7,311 shares of the company's stock worth $3,732,000 after buying an additional 6,327 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, insider Brett Michael Merritt sold 701 shares of the firm's stock in a transaction on Monday, May 11th. The stock was 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 of the company's stock, valued at $7,165,755. This trade represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Jennifer Mary Bush sold 5,000 shares of Cummins stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the transaction, the vice president owned 11,986 shares of the company's stock, valued at approximately $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 13,579 shares of company stock worth $9,377,684 in the last three months. Insiders own 0.30% of the company's stock.

Cummins Price Performance

NYSE CMI opened at $663.96 on Monday. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. The company has a market cap of $91.62 billion, a PE ratio of 34.46, a price-to-earnings-growth ratio of 1.62 and a beta of 1.22. Cummins Inc. has a 52 week low of $354.68 and a 52 week high of $737.76. The firm's 50-day simple moving average is $672.19 and its two-hundred day simple moving average is $619.89.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter last year, the company earned $5.96 earnings per share. The company's revenue was up 2.7% on a year-over-year basis. Research analysts predict that Cummins Inc. will post 29.39 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors 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 yield of 1.3%. Cummins's payout ratio is 45.67%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Truist Financial boosted their target price on shares of Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Wells Fargo & Company raised their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Robert W. Baird set a $700.00 price objective on Cummins in a research note on Wednesday, May 6th. Finally, Sanford C. Bernstein reissued a "market perform" rating on shares of Cummins in a report on Friday, May 22nd. Eleven analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $740.07.

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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