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

Rakuten Investment Management Inc. bought a new position in Cummins Inc. (NYSE:CMI) during the 2nd quarter, HoldingsChannel reports. The firm bought 22,580 shares of the company’s stock, valued at approximately $15,605,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in CMI. BlackRock Inc. acquired a new stake in Cummins during the 2nd quarter worth $8,204,241,000. Northwestern Mutual Wealth Management Co. raised its holdings in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock worth $1,254,929,000 after buying an additional 2,434,876 shares during the period. Bank of America Corp DE bought a new position in Cummins in the second quarter valued at approximately $1,408,353,000. Norges Bank acquired a new position in shares of Cummins in the fourth quarter valued at approximately $863,441,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Cummins during the second quarter worth $973,198,000. 83.46% of the stock is owned by institutional investors.

Cummins Price Performance

NYSE:CMI opened at $564.61 on Friday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The stock’s 50-day simple moving average is $647.45 and its 200 day simple moving average is $627.90. The company has a market cap of $77.72 billion, a P/E ratio of 28.85, a P/E/G ratio of 1.37 and a beta of 1.24. Cummins Inc. has a 52-week low of $389.52 and a 52-week high of $737.76.

Cummins (NYSE:CMI) last issued 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 company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period last year, the company posted $6.43 earnings per share. As a group, sell-side analysts forecast that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

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

Insider Transactions at Cummins

In related news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was 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 owned 4,479 shares in the company, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.30% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. 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. Barclays lifted their target price on Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Raymond James Financial upped their price target on Cummins from $675.00 to $745.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 26th. Weiss Ratings raised shares of Cummins from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, August 17th. Finally, Citigroup lifted their price objective on shares of Cummins from $770.00 to $790.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Twelve research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Cummins has a consensus rating of “Moderate Buy” and an average price target of $745.64.

Cummins Company 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.