Torray LLC purchased a new position in shares of Cummins Inc. (NYSE:CMI) during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 15,410 shares of the company’s stock, valued at approximately $2,251,000.
A number of other institutional investors have also recently added to or reduced their stakes in CMI. DnB Asset Management AS boosted its holdings in Cummins by 14.0% during the second quarter. DnB Asset Management AS now owns 42,406 shares of the company’s stock worth $5,640,000 after purchasing an additional 5,200 shares during the last quarter. Clinton Group Inc. purchased a new position in Cummins in the second quarter valued at about $2,027,000. IFM Investors Pty Ltd boosted its stake in Cummins by 46.5% in the second quarter. IFM Investors Pty Ltd now owns 7,203 shares of the company’s stock valued at $958,000 after acquiring an additional 2,287 shares during the last quarter. DAVENPORT & Co LLC boosted its stake in Cummins by 147.5% in the second quarter. DAVENPORT & Co LLC now owns 25,539 shares of the company’s stock valued at $3,397,000 after acquiring an additional 15,220 shares during the last quarter. Finally, Empowered Funds LLC purchased a new position in Cummins in the second quarter valued at about $2,874,000. Institutional investors and hedge funds own 79.79% of the company’s stock.
Shares of CMI stock opened at $141.70 on Monday. The company has a market cap of $22.77 billion, a P/E ratio of 13.34, a price-to-earnings-growth ratio of 0.77 and a beta of 1.16. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.54. Cummins Inc. has a 12 month low of $124.72 and a 12 month high of $194.18.
Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 EPS for the quarter, beating the Zacks’ consensus estimate of $3.76 by $0.29. The company had revenue of $5.94 billion for the quarter, compared to analysts’ expectations of $5.96 billion. Cummins had a net margin of 5.57% and a return on equity of 29.17%. Cummins’s revenue was up 12.5% compared to the same quarter last year. During the same period in the prior year, the company posted $2.71 EPS. As a group, research analysts forecast that Cummins Inc. will post 15.34 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be issued a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 3.22%. The ex-dividend date is Wednesday, November 14th. Cummins’s dividend payout ratio (DPR) is presently 42.94%.
Cummins announced that its board has authorized a share buyback program on Tuesday, October 9th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 8.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.
A number of research firms have weighed in on CMI. Zacks Investment Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $157.00 target price on the stock in a research note on Tuesday, October 23rd. Bank of America boosted their target price on shares of Cummins from $154.00 to $157.00 and gave the company a “neutral” rating in a research note on Wednesday, August 1st. Mizuho set a $145.00 target price on shares of Cummins and gave the company a “hold” rating in a research note on Wednesday, October 31st. ValuEngine cut shares of Cummins from a “sell” rating to a “strong sell” rating in a research note on Wednesday, October 24th. Finally, Oppenheimer reiterated a “buy” rating and issued a $164.00 target price on shares of Cummins in a research note on Tuesday, October 30th. Two research analysts have rated the stock with a sell rating, fourteen have given a hold rating and eight have issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $163.60.
In related news, VP Mark Andrew Smith sold 501 shares of the company’s stock in a transaction that occurred on Tuesday, October 9th. The shares were sold at an average price of $153.27, for a total transaction of $76,788.27. Following the sale, the vice president now owns 4,463 shares of the company’s stock, valued at approximately $684,044.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jill E. Cook sold 5,307 shares of the company’s stock in a transaction that occurred on Wednesday, October 3rd. The stock was sold at an average price of $150.00, for a total transaction of $796,050.00. Following the sale, the insider now directly owns 14,985 shares in the company, valued at approximately $2,247,750. The disclosure for this sale can be found here. Insiders have sold a total of 24,890 shares of company stock worth $3,745,920 in the last ninety days. 0.67% of the stock is currently owned by insiders.
Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of 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.
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