Voleon Capital Management LP Makes New $1.12 Million Investment in Cummins Inc. $CMI

Key Points

• Voleon Capital Management LP has made a new investment of approximately $1.12 million in Cummins Inc. (NYSE: CMI), acquiring 3,564 shares during the first quarter.
• Cummins recently announced an increase in its quarterly dividend from $1.82 to $2.00 per share, reflecting an annualized payment of $8.00 and a dividend yield of 2.0%.
• The company reported earnings per share of $6.43 in its latest quarter, exceeding expectations, and had a net margin of 8.72% despite a year-over-year revenue decline of 1.7%.

Voleon Capital Management LP bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The firm bought 3,564 shares of the company's stock, valued at approximately $1,117,000.

Other institutional investors have also bought and sold shares of the company. Olde Wealth Management LLC purchased a new position in Cummins in the 1st quarter worth approximately $30,000. Accredited Wealth Management LLC acquired a new stake in shares of Cummins during the 1st quarter worth approximately $31,000. Capital A Wealth Management LLC acquired a new stake in shares of Cummins during the 4th quarter worth approximately $32,000. Opal Wealth Advisors LLC acquired a new position in Cummins in the first quarter valued at approximately $37,000. Finally, Richardson Financial Services Inc. acquired a new position in Cummins in the first quarter valued at approximately $39,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Down 0.8%

Cummins stock opened at $396.81 on Tuesday. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The firm has a 50 day moving average price of $372.25 and a 200 day moving average price of $335.88. The company has a market capitalization of $54.68 billion, a PE ratio of 18.66, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period last year, the firm earned $5.26 earnings per share. Research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. The ex-dividend date was Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. Cummins's payout ratio is presently 37.61%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on CMI shares. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Robert W. Baird upped their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Citigroup upped their price objective on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Finally, The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and upped their price objective for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Nine equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Moderate Buy" and a consensus price target of $389.29.

Insider Activity

In related news, VP Amy Rochelle Davis sold 5,002 shares of the business's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the transaction, the vice president owned 20,738 shares in the company, valued at approximately $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 26,039 shares of company stock valued at $10,385,075. 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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.