Optas LLC Buys 1,389 Shares of Cummins Inc. $CMI

Key Points

• Optas LLC increased its stake in Cummins Inc. by 185.4% during the second quarter, acquiring an additional 1,389 shares and bringing their total holdings to 2,138 shares valued at approximately $700,000.
• Several analysts recently upgraded their ratings on Cummins, with Melius Research setting a price target of $500.00 and Citigroup raising their target from $425.00 to $485.00, reflecting positive market sentiment.
• Cummins declared a quarterly dividend of $2.00 per share, up from the previous $1.82, indicating a 1.8% yield and further demonstrating the company's commitment to returning value to shareholders.

Optas LLC increased its stake in Cummins Inc. (NYSE:CMI - Free Report) by 185.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,138 shares of the company's stock after buying an additional 1,389 shares during the period. Optas LLC's holdings in Cummins were worth $700,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in CMI. Olde Wealth Management LLC bought a new position in shares of Cummins during the first quarter valued at approximately $30,000. Accredited Wealth Management LLC bought a new position in shares of Cummins during the 1st quarter valued at $31,000. Opal Wealth Advisors LLC bought a new position in shares of Cummins during the 1st quarter valued at $37,000. Richardson Financial Services Inc. purchased a new position in shares of Cummins during the 1st quarter worth $39,000. Finally, Costello Asset Management INC purchased a new stake in shares of Cummins in the 1st quarter worth $40,000. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently weighed in on CMI shares. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. Robert W. Baird raised their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Finally, Citigroup raised their price objective on shares of Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research note on Tuesday, September 23rd. Ten equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Moderate Buy" and a consensus price target of $397.43.

Insider Transactions at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at $8,354,925.44. This represents a 19.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Robert Enright sold 1,860 shares of the company's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president directly owned 955 shares in the company, valued at approximately $384,158.30. The trade was a 66.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 43,119 shares of company stock worth $17,674,285 over the last 90 days. Insiders own 0.41% of the company's stock.

Cummins Stock Performance

Shares of CMI stock opened at $436.53 on Thursday. The company's 50 day moving average is $404.89 and its 200 day moving average is $348.14. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $440.51. The firm has a market cap of $60.15 billion, a price-to-earnings ratio of 20.52, a PEG ratio of 2.10 and a beta of 1.04.

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

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were issued a $2.00 dividend. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Friday, August 22nd. Cummins's dividend payout ratio is presently 37.61%.

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.

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