Quarry LP Invests $312,000 in Cummins Inc. $CMI

Key Points

• Quarry LP has acquired a new investment in Cummins Inc., purchasing 995 shares valued at approximately $312,000 in the first quarter of the year.
• Cummins has reported strong quarterly earnings, with an EPS of $6.43, exceeding analysts' expectations and reflecting a year-over-year revenue decline of 1.7%.
• The company also declared a quarterly dividend increase from $1.82 to $2.00, demonstrating a commitment to returning value to shareholders with an annualized yield of 2.0%.

Quarry LP purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 995 shares of the company's stock, valued at approximately $312,000.

Other large investors have also modified their holdings of the company. GAMMA Investing LLC lifted its position in shares of Cummins by 38,220.5% during the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock worth $373,428,000 after purchasing an additional 1,188,276 shares in the last quarter. Raymond James Financial Inc. grew its position in shares of Cummins by 152.3% during the first 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 during the last quarter. Nuveen LLC acquired a new stake in shares of Cummins during the first quarter worth $109,120,000. Vanguard Group Inc. lifted its holdings in shares of Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after purchasing an additional 321,823 shares during the period. Finally, Balyasny Asset Management L.P. lifted its holdings in Cummins by 5,553.8% in the fourth quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock valued at $46,731,000 after acquiring an additional 131,681 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Price Performance

CMI traded down $0.80 during trading on Friday, hitting $400.13. The company's stock had a trading volume of 864,159 shares, compared to its average volume of 706,473. The stock has a market capitalization of $55.13 billion, a price-to-earnings ratio of 18.81, a price-to-earnings-growth ratio of 1.94 and a beta of 1.02. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The firm's 50 day moving average price is $370.88 and its two-hundred day moving average price is $336.36.

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 business 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 firm earned $5.26 earnings per share. The firm's quarterly revenue was down 1.7% compared to the same quarter last year. Sell-side analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 2.0%. The ex-dividend date was Friday, August 22nd. Cummins's dividend payout ratio is currently 37.61%.

Analysts Set New Price Targets

A number of analysts recently commented on CMI shares. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a research report on Monday, August 11th. Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research report on Wednesday. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and lifted their price target for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Robert W. Baird raised their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Nine equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $389.29.

Insider Buying and Selling

In other news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction 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 completion of the transaction, the vice president directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 26,039 shares of company stock valued at $10,385,075 in the last ninety days. 0.41% of the stock is currently owned by company insiders.

Cummins 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.