Rakuten Investment Management Inc. Makes New Investment in Cummins Inc. $CMI

Rakuten Investment Management Inc. bought a new stake in shares of Cummins Inc. (NYSE:CMI) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 22,580 shares of the company’s stock, valued at approximately $15,605,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of CMI. BlackRock Inc. bought a new stake in shares of Cummins in the 2nd quarter valued at approximately $8,204,241,000. State Street Corp increased its position in Cummins by 0.8% during the fourth quarter. State Street Corp now owns 6,509,852 shares of the company’s stock worth $3,322,954,000 after buying an additional 49,628 shares during the last quarter. Geode Capital Management LLC raised its holdings in Cummins by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company’s stock valued at $1,822,534,000 after buying an additional 35,286 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in Cummins by 1.3% in the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company’s stock worth $1,741,004,000 after purchasing an additional 43,722 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its position in Cummins by 10,317.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock worth $1,254,929,000 after purchasing an additional 2,434,876 shares during the period. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Insider Activity

In related news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated 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 transaction, the vice president directly owned 4,479 shares of the company’s stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.30% of the stock is owned by company insiders.

Cummins Price Performance

Shares of NYSE:CMI opened at $564.61 on Friday. Cummins Inc. has a 1-year low of $389.52 and a 1-year high of $737.76. The firm has a market capitalization of $77.72 billion, a PE ratio of 28.85, a PEG ratio of 1.37 and a beta of 1.24. The business’s 50 day moving average is $647.45 and its 200-day moving average is $627.90. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the previous year, the company posted $6.43 earnings per share. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. Sell-side analysts predict that Cummins Inc. will post 30.06 earnings per share for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a dividend of $2.20 per share. This is an increase from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.6%. Cummins’s dividend payout ratio is 44.97%.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. UBS Group lowered their target price on shares of Cummins from $850.00 to $835.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. Evercore reissued an “outperform” rating and set a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Raymond James Financial boosted their price objective on Cummins from $675.00 to $745.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 26th. Truist Financial set a $894.00 target price on Cummins in a research note on Wednesday, August 5th. Finally, Barclays raised their target price on Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Twelve investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Cummins has an average rating of “Moderate Buy” and a consensus target price of $745.64.

Cummins Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.