Strs Ohio Acquires 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 bought a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 71,305 shares of the company's stock, valued at approximately $22,350,000. Strs Ohio owned about 0.05% of Cummins at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Olde Wealth Management LLC acquired a new position in Cummins during the 1st quarter worth $30,000. Accredited Wealth Management LLC acquired a new position in shares of Cummins during the first quarter valued at about $31,000. Capital A Wealth Management LLC acquired a new position in shares of Cummins during the fourth quarter valued at about $32,000. Opal Wealth Advisors LLC acquired a new position in shares of Cummins during the first quarter valued at about $37,000. Finally, Richardson Financial Services Inc. acquired a new position in shares of Cummins during the first quarter valued at about $39,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In other news, CFO Mark Andrew Smith sold 1,580 shares of the stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $419.00, for a total transaction of $662,020.00. Following the sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $13,232,858. This represents a 4.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the sale, the vice president directly owned 20,738 shares in the company, valued at $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 35,119 shares of company stock worth $14,159,885 over the last 90 days. Company insiders own 0.41% of the company's stock.

Cummins Price Performance

Shares of NYSE:CMI traded up $15.60 during trading on Thursday, reaching $427.38. The stock had a trading volume of 576,720 shares, compared to its average volume of 867,816. The stock has a market capitalization of $58.89 billion, a PE ratio of 20.08, a P/E/G ratio of 2.01 and a beta of 1.02. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $428.82. The business's 50-day moving average price is $383.16 and its 200 day moving average price is $338.45. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

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

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were given a dividend of $2.00 per share. 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 is currently 37.61%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on CMI. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and upped their price objective for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Barclays upped their target price on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Finally, Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Cummins has a consensus rating of "Moderate Buy" and an average target price of $389.29.

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.