Ontario Teachers Pension Plan Board Sells 981 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• The Ontario Teachers Pension Plan Board reduced its stake in Cummins Inc. by 10.6%, holding 8,290 shares worth approximately $2.6 million following the sale of 981 shares.
• Cummins has recently seen interest from major investors, with GAMMA Investing LLC increasing its stake by 38,220.5% during the same quarter, signaling strong institutional support.
• The company announced a quarterly dividend increase from $1.82 to $2.00, representing an annualized yield of 2.1%, with the upcoming payment scheduled for September 4th.

Ontario Teachers Pension Plan Board reduced its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 10.6% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 8,290 shares of the company's stock after selling 981 shares during the quarter. Ontario Teachers Pension Plan Board's holdings in Cummins were worth $2,598,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of CMI. Brighton Jones LLC lifted its stake in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after purchasing an additional 83 shares in the last quarter. World Investment Advisors purchased a new stake in Cummins in the 4th quarter worth approximately $309,000. Federated Hermes Inc. lifted its stake in Cummins by 3.0% in the 4th quarter. Federated Hermes Inc. now owns 13,887 shares of the company's stock worth $4,841,000 after purchasing an additional 403 shares in the last quarter. FMR LLC lifted its stake in Cummins by 5.7% in the 4th quarter. FMR LLC now owns 1,242,362 shares of the company's stock worth $433,087,000 after purchasing an additional 67,266 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in Cummins by 4.9% in the 4th quarter. Invesco Ltd. now owns 1,089,594 shares of the company's stock worth $379,833,000 after purchasing an additional 50,955 shares in the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have issued reports on CMI. Barclays increased their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Truist Financial increased their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday. Citigroup raised their price objective on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday. Morgan Stanley raised their price objective on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Finally, Evercore ISI lowered their price objective on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the stock. According to MarketBeat, Cummins presently has an average rating of "Hold" and a consensus price target of $370.83.

Insider Buying and Selling

In other news, Director John H. Stone purchased 1,000 shares of the business's stock in a transaction on Friday, May 16th. The shares were acquired at an average price of $332.08 per share, with a total value of $332,080.00. Following the acquisition, the director directly owned 2,441 shares in the company, valued at approximately $810,607.28. The trade was a 69.40% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.41% of the stock is currently owned by insiders.

Cummins Trading Up 0.8%

NYSE:CMI traded up $2.96 during trading hours on Friday, reaching $387.57. The company's stock had a trading volume of 932,746 shares, compared to its average volume of 1,043,067. The firm has a market capitalization of $53.40 billion, a price-to-earnings ratio of 18.22, a PEG ratio of 1.90 and a beta of 1.02. The firm has a 50-day simple moving average of $339.84 and a 200-day simple moving average of $331.71. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $391.56. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.81 and a current ratio of 1.64.

Cummins (NYSE:CMI - Get Free Report) last issued its 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 company had revenue of $8.64 billion for 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 was down 1.7% compared to the same quarter last year. During the same quarter last year, the company earned $5.26 EPS. Research analysts expect 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. Investors 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 yield of 2.1%. The ex-dividend date is Friday, August 22nd. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is 34.23%.

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.