Public Employees Retirement System of Ohio Lowers Position in Cummins Inc. $CMI

Key Points

• The Public Employees Retirement System of Ohio reduced its stake in Cummins Inc. by 20.9%, holding 60,582 shares worth approximately $19.8 million at the end of the second quarter.
• Several institutional investors, including Vanguard and Raymond James, have increased their positions in Cummins, highlighting a trend of growing interest in the company among major investors.
• Cummins announced a quarterly dividend increase to $2.00 per share, reflecting a 1.9% dividend yield, up from the previous quarterly dividend of $1.82.

Public Employees Retirement System of Ohio trimmed its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 20.9% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 60,582 shares of the company's stock after selling 16,044 shares during the period. Public Employees Retirement System of Ohio's holdings in Cummins were worth $19,841,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. lifted its position in shares of Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after buying an additional 321,823 shares in the last quarter. Northern Trust Corp increased its stake in Cummins by 1.2% in the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after acquiring an additional 22,202 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Cummins by 0.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock worth $512,343,000 after acquiring an additional 8,487 shares in the last quarter. Raymond James Financial Inc. raised its holdings in shares of Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after acquiring an additional 817,384 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of Cummins by 11.6% during the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after acquiring an additional 126,362 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Insider Transactions at Cummins

In other news, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director directly owned 5,227 shares in the company, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares in the company, valued at $2,994,038.67. This trade represents a 38.67% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 35,119 shares of company stock worth $14,159,885. Insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on CMI. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Citigroup raised their price target on Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research report on Tuesday. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a report on Wednesday, September 3rd. Finally, Barclays lifted their price target 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. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $393.57.

Cummins Trading Down 1.0%

CMI stock opened at $413.99 on Friday. The company has a market capitalization of $57.04 billion, a PE ratio of 19.46, a P/E/G ratio of 2.02 and a beta of 1.02. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $432.50. The firm's 50-day moving average is $392.70 and its 200 day moving average is $341.63. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating 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 company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the previous year, the company earned $5.26 EPS. The firm's quarterly revenue was down 1.7% on a year-over-year basis. On average, research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a $2.00 dividend. The ex-dividend date was Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. Cummins's dividend payout ratio is presently 37.61%.

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.

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