UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC Has $512.34 Million Stock Position in Cummins Inc. $CMI

Key Points

• UBS Asset Management increased its stake in Cummins Inc. by 0.5%, owning over $512 million worth of shares at the end of the recent quarter.
• Cummins reported a quarterly EPS of $6.43, surpassing analysts' expectations and generating revenue of $8.64 billion, although down 1.7% year-over-year.
• The company recently raised its quarterly dividend from $1.82 to $2.00, yielding an annualized rate of 2.0% with a payout ratio of 37.61%.

UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 0.5% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,634,580 shares of the company's stock after buying an additional 8,487 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned about 1.19% of Cummins worth $512,343,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in CMI. GAMMA Investing LLC grew its stake in Cummins by 38,220.5% during the 1st quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock worth $373,428,000 after buying an additional 1,188,276 shares during the last quarter. Raymond James Financial Inc. grew its stake in Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after buying an additional 817,384 shares during the last quarter. AQR Capital Management LLC grew its stake in Cummins by 70.9% during the 1st quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock worth $314,942,000 after buying an additional 424,294 shares during the last quarter. Nuveen LLC bought a new position in Cummins during the 1st quarter worth $109,120,000. Finally, Vanguard Group Inc. grew its stake in Cummins by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after buying an additional 321,823 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Cummins

In other 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 transaction of $748,203.60. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 26,039 shares of company stock valued at $10,385,075 over the last 90 days. 0.41% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

CMI has been the subject of several recent analyst reports. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a research note on Wednesday, September 3rd. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Wells Fargo & Company raised Cummins to an "overweight" rating in a research note on Monday, August 11th. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, The Goldman Sachs Group raised 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 research note on Tuesday, May 27th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Cummins has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Cummins Price Performance

Shares of Cummins stock traded down $0.19 during trading on Friday, hitting $410.84. The stock had a trading volume of 935,925 shares, compared to its average volume of 656,118. 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 cap of $56.61 billion, a P/E ratio of 19.32, a PEG ratio of 1.99 and a beta of 1.02. The business has a fifty day moving average of $378.17 and a two-hundred day moving average of $337.46. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $413.77.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the prior year, the firm posted $5.26 earnings per share. The company's revenue was down 1.7% on a year-over-year basis. On average, sell-side analysts expect 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. Stockholders of record on Friday, August 22nd were issued a dividend of $2.00 per share. 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%. The ex-dividend date of this dividend was Friday, August 22nd. Cummins's dividend payout ratio (DPR) is currently 37.61%.

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.