Quantbot Technologies LP Takes $3.41 Million Position in Cummins Inc. $CMI

Key Points

• Quantbot Technologies LP has purchased a new stake in Cummins Inc., acquiring approximately $3.41 million worth of shares during the first quarter.
• Cummins recently reported a quarterly EPS of $6.43, exceeding analysts’ expectations, with revenue of $8.64 billion for the quarter.
• The company has increased its quarterly dividend to $2.00 per share, resulting in an annual dividend yield of 2.0%.

Quantbot Technologies LP acquired a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 10,875 shares of the company's stock, valued at approximately $3,409,000.

A number of other hedge funds have also made changes to their positions in CMI. Olde Wealth Management LLC acquired a new position in shares of Cummins during the 1st quarter valued at about $30,000. Capital A Wealth Management LLC acquired a new position in shares of Cummins during the 4th quarter valued at about $32,000. Opal Wealth Advisors LLC acquired a new position in shares of Cummins during the 1st quarter valued at about $37,000. Richardson Financial Services Inc. acquired a new position in shares of Cummins during the 1st quarter valued at about $39,000. Finally, Costello Asset Management INC acquired a new position in shares of Cummins during the 1st quarter valued at about $40,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Price Performance

Shares of CMI stock opened at $402.18 on Wednesday. The stock has a 50 day moving average of $350.54 and a two-hundred day moving average of $333.52. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38. The company has a market capitalization of $55.42 billion, a P/E ratio of 18.91, a P/E/G ratio of 1.96 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same quarter last year, the company earned $5.26 EPS. The company's quarterly revenue was down 1.7% on a year-over-year basis. As a group, equities analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be given a $2.00 dividend. The ex-dividend date is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is 34.23%.

Analyst Ratings Changes

A number of research firms have issued reports on CMI. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday. Barclays raised their target price on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Citigroup raised their target price on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Wells Fargo & Company raised Cummins to an "overweight" rating in a report on Monday, August 11th. Finally, Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Seven investment 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. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $370.83.

Insider Transactions at Cummins

In related news, VP Jennifer Mary Bush sold 520 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the completion of the transaction, the vice president owned 15,130 shares in the company, valued at $5,872,406.90. This trade represents a 3.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, the vice president owned 7,693 shares of the company's stock, 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. Insiders have sold a total of 22,872 shares of company stock worth $9,107,105 over the last 90 days. 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.

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