Payden & Rygel Grows Stake in Cummins Inc. $CMI

Key Points

• Payden & Rygel increased its Cummins stake by 35.1% in the fourth quarter, adding 8,100 shares to reach 31,200 shares valued at about $15.9 million.
• Cummins reported stronger-than-expected quarterly results, posting EPS of $6.15 versus the $5.63 estimate and revenue of $8.40 billion, while revenue rose 2.7% year over year.
• The company also announced a quarterly dividend of $2.00 per share, payable June 4, which annualizes to $8.00 per share for a 1.2% yield.

Payden & Rygel grew its position in Cummins Inc. (NYSE:CMI - Free Report) by 35.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 31,200 shares of the company's stock after purchasing an additional 8,100 shares during the quarter. Payden & Rygel's holdings in Cummins were worth $15,926,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in CMI. Thompson Investment Management Inc. acquired a new stake in shares of Cummins in the 4th quarter worth $26,000. Activest Wealth Management boosted its stake in Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares in the last quarter. Flagship Wealth Advisors LLC acquired a new stake in Cummins in the 3rd quarter worth approximately $28,000. Ares Financial Consulting LLC acquired a new stake in Cummins in the 4th quarter worth approximately $29,000. Finally, Osterweis Capital Management Inc. acquired a new stake in Cummins in the 2nd quarter worth approximately $31,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

Shares of NYSE CMI opened at $677.20 on Tuesday. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. Cummins Inc. has a 12 month low of $307.90 and a 12 month high of $718.08. The company has a 50 day simple moving average of $603.93 and a two-hundred day simple moving average of $557.42. The stock has a market cap of $93.45 billion, a price-to-earnings ratio of 35.14, a PEG ratio of 1.76 and a beta of 1.27.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.96 EPS. As a group, analysts predict that Cummins Inc. will post 28.39 earnings per share for the current year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's payout ratio is 41.52%.

Insiders Place Their Bets

In related news, VP Marvin Boakye sold 3,481 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the transaction, the vice president directly owned 8,508 shares in the company, valued at $5,784,589.20. The trade was a 29.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Nicole Lamb-Hale sold 2,408 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $685.34, for a total transaction of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares of the company's stock, valued at approximately $9,652,328.56. This represents a 14.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 22,397 shares of company stock worth $14,465,833. 0.30% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Barclays lifted their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Wolfe Research cut Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price target for the company. in a research report on Monday, January 26th. Argus set a $696.00 price target on Cummins in a research report on Tuesday, February 10th. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Finally, Robert W. Baird set a $700.00 price target on Cummins in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $677.87.

About Cummins

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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.