Teza Capital Management LLC Acquires New Stake in Cummins Inc. $CMI

Key Points

• Teza Capital Management LLC acquired a new stake in Cummins Inc., purchasing 1,487 shares valued at approximately $466,000 during the first quarter.
• Analysts have shown increased confidence in Cummins, with nine analysts rating the stock as a Buy and a target price set around $389.29.
• Cummins recently raised its quarterly dividend to $2.00 per share, marking a positive change from the previous $1.82, resulting in a yield of 2.0%.

Teza Capital Management LLC purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,487 shares of the company's stock, valued at approximately $466,000.

Several other institutional investors and hedge funds also recently made changes to their positions in CMI. GAMMA Investing LLC increased its stake in shares of Cummins by 38,220.5% in the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock valued at $373,428,000 after buying an additional 1,188,276 shares during the period. Raymond James Financial Inc. increased its stake in shares of Cummins by 152.3% in the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after buying an additional 817,384 shares during the period. AQR Capital Management LLC increased its stake in shares of Cummins by 70.9% in the first quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock valued at $314,942,000 after buying an additional 424,294 shares during the period. Nuveen LLC acquired a new stake in shares of Cummins in the first quarter valued at about $109,120,000. Finally, Vanguard Group Inc. increased its stake in shares of Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after buying an additional 321,823 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Up 1.5%

Shares of CMI traded up $6.23 during trading hours on Thursday, hitting $411.50. The stock had a trading volume of 875,542 shares, compared to its average volume of 868,013. The firm has a 50 day simple moving average of $375.00 and a 200-day simple moving average of $336.77. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $413.66. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The firm has a market capitalization of $56.70 billion, a P/E ratio of 19.35, a price-to-earnings-growth ratio of 1.91 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly 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. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same quarter last year, the firm posted $5.26 EPS. Cummins's revenue was down 1.7% compared to the same quarter last year. Sell-side analysts predict that Cummins Inc. will post 22.54 EPS 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 given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. Cummins's payout ratio is presently 37.61%.

Insider Activity at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction that occurred on Friday, August 22nd. The shares were 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 in the company, valued at approximately $384,158.30. The trade was a 66.07% 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. Corporate insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on CMI shares. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a report on Monday, August 11th. Truist Financial increased their price target on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and increased their price target for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. Nine research 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.com, Cummins presently has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Cummins Company 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.