Vanguard Group Inc. Raises Stock Holdings in 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. increased its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 1.9% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 17,283,469 shares of the company's stock after purchasing 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 SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CMI. Brighton Jones LLC raised its holdings in Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after purchasing an additional 83 shares during the last quarter. World Investment Advisors acquired a new position in shares of Cummins in the fourth quarter worth $309,000. Federated Hermes Inc. raised its holdings in shares of Cummins by 3.0% in the fourth quarter. Federated Hermes Inc. now owns 13,887 shares of the company's stock worth $4,841,000 after acquiring an additional 403 shares during the last quarter. FMR LLC raised its holdings in shares of Cummins by 5.7% in the fourth quarter. FMR LLC now owns 1,242,362 shares of the company's stock worth $433,087,000 after acquiring an additional 67,266 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in shares of Cummins by 4.9% in the fourth quarter. Invesco Ltd. now owns 1,089,594 shares of the company's stock worth $379,833,000 after acquiring an additional 50,955 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CMI. Evercore ISI cut their price target on Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a report on Monday, May 19th. Barclays upped their target price on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and upped their target price for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Robert W. Baird upped their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Finally, JPMorgan Chase & Co. upped their target price on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $370.83.

Insider Buying and Selling at Cummins

In related news, Director John H. Stone bought 1,000 shares of the firm's stock in a transaction dated Friday, May 16th. The stock was bought at an average price of $332.08 per share, with a total value of $332,080.00. Following the completion of the transaction, the director directly owned 2,441 shares of the company's stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through this hyperlink. 0.41% of the stock is owned by insiders.

Cummins Trading Up 0.8%

NYSE:CMI traded up $2.96 on Friday, hitting $387.57. 932,746 shares of the stock were exchanged, compared to its average volume of 1,043,067. The stock has a market cap of $53.40 billion, a PE ratio of 18.22, a PEG ratio of 1.91 and a beta of 1.02. The company has a current ratio of 1.64, a quick ratio of 0.81 and a debt-to-equity ratio of 0.53. The stock has a fifty day moving average of $339.84 and a 200-day moving average of $331.47. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $391.56.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping 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 company had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same period in the prior year, the firm posted $5.26 earnings per share. The firm's revenue was down 1.7% on a year-over-year basis. As a group, equities 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 will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a $2.00 dividend. The ex-dividend date of this dividend is 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 2.1%. Cummins's dividend payout ratio (DPR) is currently 34.23%.

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.