Virtu Financial LLC Takes Position in Cummins Inc. (NYSE:CMI)

Key Points

• Virtu Financial LLC acquired 8,501 shares of Cummins Inc. valued at approximately $2.66 million in the 1st quarter.
• Research analysts have recently raised their price targets on Cummins, with Goldman Sachs upgrading it to a "buy" rating and setting a new target of $431.00.
• Cummins announced a quarterly dividend increase from $1.82 to $2.00 per share, reflecting a strong governance strategy and a dividend yield of 2.1%.

Virtu Financial LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 8,501 shares of the company's stock, valued at approximately $2,664,000.

Several other large investors have also recently made changes to their positions in the business. Capital A Wealth Management LLC bought a new position in shares of Cummins during the 4th quarter worth $32,000. Olde Wealth Management LLC bought a new position in shares of Cummins during the 1st quarter worth $30,000. Opal Wealth Advisors LLC bought a new position in shares of Cummins during the 1st quarter worth $37,000. Richardson Financial Services Inc. bought a new position in shares of Cummins during the 1st quarter worth $39,000. Finally, Costello Asset Management INC bought a new position in shares of Cummins during the 1st quarter worth $40,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Truist Financial increased their price target on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday. Robert W. Baird increased their price target on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and raised their target price for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. JPMorgan Chase & Co. raised their target price on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 6th. Finally, Evercore ISI cut their target price on Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a research note on Monday, May 19th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Stock Performance

Shares of CMI opened at $387.57 on Friday. The company has a market cap of $53.40 billion, a PE ratio of 18.22, a price-to-earnings-growth 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 50-day moving average price of $339.84 and a 200-day moving average price of $331.47. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $391.56.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The firm had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The company's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the company posted $5.26 EPS. As a group, equities analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

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

Insider Buying and Selling at Cummins

In other news, Director John H. Stone acquired 1,000 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The shares were bought at an average cost of $332.08 per share, with a total value of $332,080.00. Following the acquisition, the director owned 2,441 shares in the company, valued at approximately $810,607.28. This represents a 69.40% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.41% of the company's stock.

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.

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