Vanguard Group Inc. Buys 321,823 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• Vanguard Group Inc. increased its stake in Cummins Inc. by 1.9%, now owning over 17 million shares valued at approximately $5.4 billion, which represents a 12.55% ownership in the company.
• Multiple brokerages have revised their target prices for Cummins, with JPMorgan raising it to $320, while Goldman Sachs upgraded it to $431 and gave it a "buy" rating.
• Cummins recently raised its quarterly dividend to $2.00 per share from $1.82, reflecting a 2.1% dividend yield and a payout ratio of 34.23%.

Vanguard Group Inc. grew its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 1.9% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 17,283,469 shares of the company's stock after buying an additional 321,823 shares during the quarter. Vanguard Group Inc. owned 12.55% of Cummins worth $5,417,331,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently modified their holdings of the company. GAMMA Investing LLC increased its stake in shares of 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 purchasing an additional 1,188,276 shares during the last quarter. Northern Trust Corp grew its stake in Cummins by 15.1% in the 4th quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock valued at $656,418,000 after buying an additional 246,807 shares in the last quarter. Neuberger Berman Group LLC boosted its holdings in Cummins by 57.0% in the 4th quarter. Neuberger Berman Group LLC now owns 643,482 shares of the company's stock valued at $224,317,000 after purchasing an additional 233,694 shares during the period. Balyasny Asset Management L.P. boosted its holdings in Cummins by 5,553.8% in the 4th quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock valued at $46,731,000 after purchasing an additional 131,681 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new position in Cummins in the 4th quarter valued at $45,015,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

NYSE:CMI traded down $0.23 during trading hours on Monday, reaching $386.80. The company had a trading volume of 198,050 shares, compared to its average volume of 884,557. The company has a current ratio of 1.64, a quick ratio of 1.03 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 $392.93. The firm has a market cap of $53.30 billion, a price-to-earnings ratio of 18.18, a PEG ratio of 1.88 and a beta of 1.02. The firm's 50 day moving average price is $339.84 and its 200-day moving average price is $331.20.

Cummins (NYSE:CMI - Get Free Report) last posted its 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 during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's revenue was down 1.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.26 EPS. On average, analysts forecast that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be paid a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.1%. Cummins's dividend payout ratio is presently 34.23%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Robert W. Baird upped their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and increased their target price for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Wolfe Research upgraded shares of Cummins from a "peer perform" rating to an "outperform" rating in a report on Monday. Evercore ISI decreased their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a research note on Monday, May 19th. Finally, JPMorgan Chase & Co. increased their price target on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 6th. One analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, Cummins currently has a consensus rating of "Hold" and an average target price of $370.83.

Insider Buying and Selling at Cummins

In other news, Director John H. Stone bought 1,000 shares of the stock in a transaction that occurred on Friday, May 16th. The shares were bought at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the purchase, the director owned 2,441 shares in the company, valued at $810,607.28. This represents a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 0.41% of the company's stock.

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.