Varma Mutual Pension Insurance Co Buys New Shares in Cummins Inc. $CMI

Varma Mutual Pension Insurance Co purchased a new position in Cummins Inc. (NYSE:CMI) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 33,330 shares of the company’s stock, valued at approximately $23,771,000.

Several other institutional investors have also added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of Cummins in the 2nd quarter valued at about $8,204,241,000. Northwestern Mutual Wealth Management Co. boosted 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 valued at $1,254,929,000 after acquiring an additional 2,434,876 shares during the period. Norges Bank bought a new position in Cummins during the 4th quarter worth approximately $863,441,000. Bank of New York Mellon Corp bought a new position in Cummins during the 2nd quarter worth approximately $973,198,000. Finally, Boston Partners purchased a new position in Cummins in the 3rd quarter worth approximately $473,471,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Down 0.9%

NYSE:CMI opened at $587.87 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The firm’s 50-day moving average price is $660.86 and its 200-day moving average price is $628.31. The company has a market capitalization of $80.93 billion, a PE ratio of 30.04, a P/E/G ratio of 1.40 and a beta of 1.24. Cummins Inc. has a 1-year low of $389.52 and a 1-year high of $737.76.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (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 business had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. During the same period last year, the business earned $6.43 earnings per share. The company’s revenue was up 9.4% on a year-over-year basis. On average, equities analysts predict that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be given a $2.20 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.5%. This is an increase from Cummins’s previous quarterly dividend of $2.00. Cummins’s payout ratio is presently 40.88%.

Wall Street Analyst Weigh In

CMI has been the subject of several recent research reports. Argus boosted their price objective on Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research report on Monday, June 1st. Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Wells Fargo & Company upped their price target on shares of Cummins from $794.00 to $874.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Raymond James Financial increased their price target on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research report on Tuesday, May 26th. Finally, Robert W. Baird set a $700.00 price target on Cummins in a research report on Wednesday, May 6th. Eleven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average 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.