Teacher Retirement System of Texas Acquires 12,049 Shares of Cummins Inc. $CMI

Key Points

• Teacher Retirement System of Texas increased its stake in Cummins by 17.5%, buying 12,049 shares to hold 80,765 shares (about 0.06% of the company) valued at roughly $41.23 million at quarter-end.
• Cummins beat estimates for the quarter, reporting $5.81 EPS versus $5.17 expected and $8.54 billion in revenue, and analysts project about 26.03 EPS for the current year.
• The company recently paid a quarterly dividend of $2.00 ($8.00 annualized, ~1.2% yield) and has received price-target upgrades (e.g., Wells Fargo to $693, Raymond James to $675) amid a consensus "Moderate Buy" and ~83% institutional ownership.

Teacher Retirement System of Texas increased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 17.5% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 80,765 shares of the company's stock after purchasing an additional 12,049 shares during the period. Teacher Retirement System of Texas owned approximately 0.06% of Cummins worth $41,226,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Cummins by 8.4% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock worth $13,107,000 after acquiring an additional 2,417 shares in the last quarter. New York State Teachers Retirement System raised its holdings in shares of Cummins by 2.1% in the 3rd quarter. New York State Teachers Retirement System now owns 111,911 shares of the company's stock worth $47,268,000 after acquiring an additional 2,305 shares during the last quarter. Bailard Inc. raised its holdings in shares of Cummins by 7.2% in the 3rd quarter. Bailard Inc. now owns 59,830 shares of the company's stock worth $25,270,000 after acquiring an additional 4,035 shares during the last quarter. Fisher Asset Management LLC lifted its position in Cummins by 2.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after acquiring an additional 91,956 shares in the last quarter. Finally, Accredited Wealth Management LLC boosted its stake in Cummins by 3,100.0% during the 3rd quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock valued at $1,352,000 after purchasing an additional 3,100 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Performance

NYSE CMI opened at $657.49 on Friday. The company has a market capitalization of $90.84 billion, a PE ratio of 32.04, a price-to-earnings-growth ratio of 2.02 and a beta of 1.14. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. Cummins Inc. has a 52-week low of $282.77 and a 52-week high of $663.01. The company has a 50-day simple moving average of $575.23 and a 200 day simple moving average of $528.25.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm had revenue of $8.54 billion for the quarter, compared to analysts' expectations of $8.09 billion. During the same period in the previous year, the company earned $5.16 earnings per share. The company's quarterly revenue was up 1.1% on a year-over-year basis. On average, research analysts predict that Cummins Inc. will post 26.03 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were paid a $2.00 dividend. The ex-dividend date was Friday, February 20th. This represents a $8.00 annualized dividend and a yield of 1.2%. Cummins's dividend payout ratio is presently 38.99%.

Insider Activity at Cummins

In related news, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $584.93, for a total value of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. The trade was a 22.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Earl Newsome sold 1,300 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $583.67, for a total transaction of $758,771.00. Following the sale, the vice president directly owned 3,389 shares in the company, valued at $1,978,057.63. The trade was a 27.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 31,195 shares of company stock worth $18,397,489 in the last three months. Corporate insiders own 0.30% of the company's stock.

Analyst Ratings Changes

A number of analysts have commented on the company. Wells Fargo & Company boosted their price objective on Cummins from $630.00 to $693.00 and gave the stock an "overweight" rating in a report on Monday, April 13th. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Weiss Ratings reiterated a "buy (b)" rating on shares of Cummins in a report on Friday, April 10th. Raymond James Financial increased their price target on Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a research report on Monday, February 9th. Finally, Zacks Research lowered shares of Cummins from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, January 28th. Eleven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $600.27.

About Cummins

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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