R Squared Ltd Makes New Investment in Cummins Inc. (NYSE:CMI)

Key Points

• R Squared Ltd has invested approximately $433,000 in Cummins Inc. by purchasing 1,380 shares, as disclosed in their Form 13F filing with the SEC.
• Analysts' ratings for Cummins Inc. vary, with one sell rating, seven hold ratings, and five buy ratings; the consensus target price is $361.92.
• Cummins has announced an increase in its quarterly dividend to $2.00 per share, reflecting an annualized yield of 2.2% and an increase from the previous dividend of $1.82.

R Squared Ltd acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 1,380 shares of the company's stock, valued at approximately $433,000.

Several other hedge funds have also recently modified their holdings of CMI. Brighton Jones LLC grew its position in Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after buying an additional 83 shares during the period. Summit Financial LLC increased its position in Cummins by 11.8% during the fourth quarter. Summit Financial LLC now owns 1,001 shares of the company's stock worth $349,000 after buying an additional 106 shares during the period. Headlands Technologies LLC acquired a new stake in shares of Cummins during the 4th quarter valued at approximately $69,000. World Investment Advisors purchased a new position in shares of Cummins during the 4th quarter worth about $309,000. Finally, Motley Fool Asset Management LLC grew its stake in Cummins by 12.3% during the 4th quarter. Motley Fool Asset Management LLC now owns 6,194 shares of the company's stock valued at $2,159,000 after purchasing an additional 679 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In other Cummins news, Director John H. Stone purchased 1,000 shares of the firm's stock in a transaction on Friday, May 16th. The shares were purchased at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the purchase, the director directly owned 2,441 shares of the company's stock, valued at approximately $810,607.28. This represents a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.41% of the company's stock.

Cummins Trading Up 1.6%

Shares of CMI traded up $5.64 during mid-day trading on Monday, reaching $361.48. The company had a trading volume of 949,524 shares, compared to its average volume of 947,809. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $387.90. The firm has a fifty day simple moving average of $334.30 and a 200-day simple moving average of $330.82. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The stock has a market cap of $49.80 billion, a price-to-earnings ratio of 17.98, a price-to-earnings-growth ratio of 1.98 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Monday, May 5th. The company reported $5.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.92 by $1.04. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The firm had revenue of $8.17 billion for the quarter, compared to analysts' expectations of $8.22 billion. During the same quarter last year, the company posted $5.08 earnings per share. Cummins's revenue was down 2.7% 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 business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is 36.22%.

Analyst Ratings Changes

Several brokerages recently weighed in on CMI. Morgan Stanley raised their price objective on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Truist Financial cut their price objective on shares of Cummins from $420.00 to $338.00 and set a "hold" rating for the company in a research report on Tuesday, April 8th. Barclays upped their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Evercore ISI cut their target price on Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. Finally, Citigroup restated a "buy" rating and issued a $360.00 price objective (up from $350.00) on shares of Cummins in a report on Tuesday, June 24th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company's stock. According to MarketBeat.com, Cummins presently has a consensus rating of "Hold" and an average target price of $361.92.

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.