VIRGINIA RETIREMENT SYSTEMS ET Al Buys Shares of 2,160 Cummins Inc. $CMI

Key Points

• Virginia Retirement Systems initiated a position in Cummins by purchasing 2,160 shares valued at approximately $1.54 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of analysts’ $7.21 estimate.
• The company increased its quarterly dividend to $2.20 per share, or $8.80 annually, representing a 1.6% yield; analysts maintain a “Moderate Buy” consensus with an average price target of $764.54.

VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 2,160 shares of the company's stock, valued at approximately $1,541,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. California State Teachers Retirement System grew its stake in Cummins by 71,801.8% in the 2nd quarter. California State Teachers Retirement System now owns 148,240,699 shares of the company's stock worth $105,726,749,000 after acquiring an additional 148,034,528 shares during the period. Ameritas Advisory Services LLC lifted its stake in shares of Cummins by 19.4% during the 2nd quarter. Ameritas Advisory Services LLC now owns 4,573 shares of the company's stock worth $3,262,000 after purchasing an additional 742 shares during the period. Guardian Wealth Advisors LLC NC purchased a new position in shares of Cummins during the 2nd quarter worth $218,000. Wedmont Private Capital boosted its holdings in shares of Cummins by 4.4% during the second quarter. Wedmont Private Capital now owns 1,772 shares of the company's stock worth $1,198,000 after purchasing an additional 74 shares during the last quarter. Finally, Insight Inv LLC acquired a new position in Cummins in the second quarter valued at $250,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Cummins

In related news, VP Earl Newsome sold 698 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the sale, the vice president directly owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Cummins Stock Up 1.2%

Shares of NYSE:CMI opened at $556.76 on Friday. The stock has a 50-day simple moving average of $619.80 and a 200-day simple moving average of $625.13. The stock has a market capitalization of $76.64 billion, a P/E ratio of 28.45, a PEG ratio of 1.49 and a beta of 1.23. Cummins Inc. has a 1 year low of $400.72 and a 1 year high of $737.76. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). The business had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company's quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $6.43 EPS. Equities analysts forecast that Cummins Inc. will post 30.06 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were paid a $2.20 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.6%. This is a boost from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is 44.97%.

Wall Street Analysts Forecast Growth

CMI has been the subject of several recent analyst reports. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Argus boosted their target price on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a report on Monday, June 1st. Raymond James Financial upped their price target on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Zacks Research downgraded shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $764.54.

Cummins Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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