Cummins Inc. $CMI Shares Purchased by Scientech Research LLC

Key Points

• Scientech Research LLC increased its stake in Cummins Inc. by 244.9%, now owning 6,733 shares worth approximately $2.11 million, marking it as the 11th largest holding in their portfolio.
• Cummins recently reported $6.43 EPS for the last quarter, surpassing estimates by $1.22, with revenue slightly down 1.7% year-over-year at $8.64 billion.
• The company has announced a quarterly dividend increase to $2.00 per share, which reflects a yield of 2.0% on an annualized basis.

Scientech Research LLC boosted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 244.9% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,733 shares of the company's stock after buying an additional 4,781 shares during the quarter. Cummins accounts for approximately 0.6% of Scientech Research LLC's investment portfolio, making the stock its 11th largest position. Scientech Research LLC's holdings in Cummins were worth $2,110,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in 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 purchasing an additional 321,823 shares during the period. 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 buying an additional 22,202 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Cummins by 6.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock valued at $566,856,000 after buying an additional 99,009 shares during the period. Raymond James Financial Inc. grew its stake in Cummins by 152.3% in 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, Royal Bank of Canada increased its position in shares of Cummins by 3.7% during the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock worth $443,169,000 after acquiring an additional 44,907 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Up 1.5%

Shares of CMI stock traded up $6.23 during trading hours on Thursday, reaching $411.50. 755,609 shares of the company's stock were exchanged, compared to its average volume of 866,683. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $413.66. The stock's 50 day moving average is $375.00 and its 200-day moving average is $336.77. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The company has a market cap of $56.70 billion, a price-to-earnings ratio of 19.35, a P/E/G ratio of 1.91 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results 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. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm's quarterly revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the company posted $5.26 EPS. Analysts predict that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

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

Insider Activity at Cummins

In related news, VP Robert Enright sold 1,860 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president directly owned 955 shares of the company's stock, valued at $384,158.30. This represents a 66.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Mark Andrew Smith sold 6,500 shares of Cummins stock in a transaction dated 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 sale, 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 position. The disclosure for this sale can be found here. Insiders have sold 26,039 shares of company stock worth $10,385,075 in the last 90 days. 0.41% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

CMI has been the subject of several research reports. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Truist Financial increased their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. Citigroup raised their target price on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Finally, Barclays upped their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $389.29.

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.