Strs Ohio Purchases Shares of 71,305 Cummins Inc. $CMI

Key Points

• Strs Ohio has acquired 71,305 shares of Cummins Inc. valued at approximately $22.35 million, representing a 0.05% ownership stake at the end of the last quarter.
• Cummins recently reported strong quarterly earnings, with an EPS of $6.43, exceeding analysts' expectations, and also announced an increase in its quarterly dividend from $1.82 to $2.00.
• Institutional investors hold about 83.46% of Cummins' stock, with recent upgrades to the stock's ratings indicating a generally optimistic outlook from analysts.

Strs Ohio purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 71,305 shares of the company's stock, valued at approximately $22,350,000. Strs Ohio owned approximately 0.05% of Cummins at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. grew 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 last quarter. Northern Trust Corp grew its holdings in shares of Cummins by 1.2% during the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after purchasing an additional 22,202 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Cummins by 0.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock worth $512,343,000 after purchasing an additional 8,487 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Cummins by 6.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock worth $566,856,000 after purchasing an additional 99,009 shares during the last quarter. Finally, Raymond James Financial Inc. grew its holdings 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 purchasing an additional 817,384 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Stock Performance

NYSE CMI opened at $410.84 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $413.77. The business's 50-day moving average price is $378.17 and its 200 day moving average price is $337.46. The firm has a market cap of $56.61 billion, a P/E ratio of 19.32, a P/E/G ratio of 1.99 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The firm 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 business's revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the company posted $5.26 earnings per share. On average, equities research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

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

Analysts Set New Price Targets

CMI has been the topic of several research reports. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Wells Fargo & Company raised Cummins to an "overweight" rating in a report on Monday, August 11th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Robert W. Baird raised their price objective on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Finally, Citigroup raised their price target on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Cummins presently has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Insider Transactions at Cummins

In related news, Director Karen H. Quintos sold 1,307 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the sale, the director owned 5,227 shares in the company, valued at $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the sale, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 26,039 shares of company stock valued at $10,385,075 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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