Renaissance Technologies LLC Takes Position in Cummins Inc. $CMI

Key Points

• Renaissance Technologies initiated a Cummins position in the first quarter, buying 25,220 shares valued at approximately $13.6 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive outlook, with an overall “Moderate Buy” rating and an average price target of $740.07. Truist Financial recently raised its target to $901, while Cummins’ latest quarterly earnings exceeded expectations.
• Cummins increased its quarterly dividend from $2.00 to $2.20 per share, implying an annualized dividend of $8.80 and a 1.4% yield.

Renaissance Technologies LLC bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 25,220 shares of the company's stock, valued at approximately $13,569,000.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in Cummins by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after purchasing an additional 98,544 shares in the last quarter. State Street Corp increased its holdings in shares of Cummins by 0.8% in the fourth quarter. State Street Corp now owns 6,509,852 shares of the company's stock worth $3,322,954,000 after purchasing an additional 49,628 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Cummins by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after purchasing an additional 35,286 shares during the last quarter. Fisher Asset Management LLC lifted its position in shares of Cummins by 1.3% in the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after buying an additional 43,722 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in Cummins by 10,317.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after buying an additional 2,434,876 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Cummins

In related news, VP Marvin Boakye sold 3,481 shares of Cummins stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the completion of the transaction, the vice president directly owned 8,508 shares of the company's stock, valued at approximately $5,784,589.20. The trade was a 29.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the transaction, the vice president owned 8,316 shares in the company, valued at $5,912,010.72. The trade was a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 13,579 shares of company stock valued at $9,377,684 over the last three months. Corporate insiders own 0.30% of the company's stock.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. UBS Group restated a "buy" rating on shares of Cummins in a report on Wednesday, June 17th. Robert W. Baird set a $700.00 price objective on Cummins in a report on Wednesday, May 6th. Sanford C. Bernstein reiterated a "market perform" rating on shares of Cummins in a research report on Friday, May 22nd. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Finally, Truist Financial upped their price target on shares of Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $740.07.

Cummins Trading Up 0.4%

Shares of NYSE CMI opened at $635.55 on Friday. Cummins Inc. has a 1-year low of $354.68 and a 1-year high of $737.76. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The business's 50 day moving average is $670.10 and its two-hundred day moving average is $622.52. The stock has a market capitalization of $87.70 billion, a P/E ratio of 32.98, a PEG ratio of 1.54 and a beta of 1.22.

Cummins (NYSE:CMI - Get Free Report) last posted 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 analyst estimates 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 period last year, the company earned $5.96 EPS. As a group, research analysts expect that Cummins Inc. will post 29.39 EPS for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a $2.20 dividend. This is a boost from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, August 21st. Cummins's dividend payout ratio is 41.52%.

Cummins Company Profile

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.

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