OMERS ADMINISTRATION Corp Increases Stock Position in Cummins Inc. $CMI

Key Points

• OMERS ADMINISTRATION Corp increased its stake in Cummins Inc. by 13.3%, acquiring an additional 1,157 shares, bringing its total holdings to 9,855 shares valued at $3,089,000.
• Cummins reported earnings of $6.43 per share, exceeding expectations, with quarterly revenue reaching $8.64 billion, though revenue was down 1.7% year-over-year.
• The company announced a quarterly dividend increase from $1.82 to $2.00 per share, representing an annualized yield of 2.0% and a payout ratio of 37.61%.

OMERS ADMINISTRATION Corp boosted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 13.3% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 9,855 shares of the company's stock after purchasing an additional 1,157 shares during the period. OMERS ADMINISTRATION Corp's holdings in Cummins were worth $3,089,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Olde Wealth Management LLC purchased a new stake in shares of Cummins in the 1st quarter valued at $30,000. Accredited Wealth Management LLC purchased a new stake in shares of Cummins in the 1st quarter valued at $31,000. Capital A Wealth Management LLC purchased a new stake in shares of Cummins in the 4th quarter valued at $32,000. Opal Wealth Advisors LLC purchased a new stake in shares of Cummins in the 1st quarter valued at $37,000. Finally, Richardson Financial Services Inc. purchased a new stake in shares of Cummins in the 1st quarter valued at $39,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on CMI shares. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Morgan Stanley upped their price objective 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 upped their price objective for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Barclays increased their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Finally, Citigroup increased their price target on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Seven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $370.83.

Cummins Stock Performance

NYSE CMI traded down $3.49 during mid-day trading on Monday, reaching $398.43. 593,343 shares of the stock were exchanged, compared to its average volume of 872,355. 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 50 day moving average is $364.99 and its 200-day moving average is $335.23. The company has a market capitalization of $54.90 billion, a P/E ratio of 18.73, a P/E/G ratio of 1.93 and a beta of 1.02. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share 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 analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's revenue for the quarter was down 1.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.26 earnings per share. On average, equities research analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend 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 dividend payout ratio (DPR) is currently 37.61%.

Insiders Place Their Bets

In other news, CFO Mark Andrew Smith sold 6,500 shares of the 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 completion of the sale, the chief financial officer directly owned 31,582 shares in the company, valued at $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the sale, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 26,039 shares of company stock valued at $10,385,075. Corporate insiders own 0.41% of the company's stock.

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.