Riverhead Capital Management LLC Grows Stake in Cummins Inc. (NYSE:CMI)

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Riverhead Capital Management LLC raised its holdings in shares of Cummins Inc. (NYSE:CMI) by 63.0% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 87,988 shares of the company’s stock after buying an additional 34,000 shares during the quarter. Cummins comprises about 0.6% of Riverhead Capital Management LLC’s portfolio, making the stock its 21st biggest holding. Riverhead Capital Management LLC’s holdings in Cummins were worth $13,891,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Oregon Public Employees Retirement Fund grew its holdings in shares of Cummins by 12,091.8% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 12,411,147 shares of the company’s stock valued at $93,000 after purchasing an additional 12,309,348 shares during the period. Ronna Sue Cohen grew its holdings in shares of Cummins by 16,590.4% in the first quarter. Ronna Sue Cohen now owns 2,152,730 shares of the company’s stock valued at $2,153,000 after purchasing an additional 2,139,832 shares during the period. Norges Bank purchased a new stake in shares of Cummins in the fourth quarter valued at about $232,262,000. Parnassus Investments CA grew its holdings in shares of Cummins by 76.5% in the fourth quarter. Parnassus Investments CA now owns 1,500,000 shares of the company’s stock valued at $200,460,000 after purchasing an additional 650,000 shares during the period. Finally, Bank of Nova Scotia grew its holdings in shares of Cummins by 1,826.7% in the fourth quarter. Bank of Nova Scotia now owns 600,989 shares of the company’s stock valued at $80,314,000 after purchasing an additional 569,797 shares during the period. 81.20% of the stock is owned by institutional investors and hedge funds.

A number of equities research analysts recently issued reports on CMI shares. Zacks Investment Research lowered shares of Cummins from a “buy” rating to a “hold” rating in a report on Tuesday, February 12th. ValuEngine raised shares of Cummins from a “sell” rating to a “hold” rating in a report on Friday, February 15th. Piper Jaffray Companies set a $195.00 price objective on shares of Cummins and gave the company a “buy” rating in a report on Thursday, April 4th. Citigroup raised shares of Cummins from a “neutral” rating to a “buy” rating and upped their price objective for the company from $155.00 to $190.00 in a report on Tuesday, April 16th. Finally, Buckingham Research upped their price objective on shares of Cummins from $160.00 to $172.00 and gave the company a “neutral” rating in a report on Tuesday, April 16th. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and seven have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $166.98.

In other Cummins news, insider Srikanth Padmanabhan sold 1,687 shares of the company’s stock in a transaction dated Monday, March 18th. The shares were sold at an average price of $160.00, for a total value of $269,920.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.95% of the company’s stock.

NYSE CMI traded down $1.16 during trading hours on Wednesday, reaching $163.05. The company had a trading volume of 31,653 shares, compared to its average volume of 1,264,216. Cummins Inc. has a 1-year low of $124.40 and a 1-year high of $169.45. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.57 and a quick ratio of 0.96. The stock has a market capitalization of $25.51 billion, a P/E ratio of 12.33, a PEG ratio of 1.24 and a beta of 1.11.

Cummins (NYSE:CMI) last posted its earnings results on Tuesday, April 30th. The company reported $4.20 EPS for the quarter, beating the Zacks’ consensus estimate of $3.51 by $0.69. Cummins had a net margin of 10.24% and a return on equity of 30.72%. The company had revenue of $6 billion for the quarter, compared to analysts’ expectations of $5.80 billion. During the same quarter in the prior year, the company posted $3.30 earnings per share. Cummins’s revenue for the quarter was up 7.8% compared to the same quarter last year. As a group, analysts anticipate that Cummins Inc. will post 16.23 EPS for the current year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 5th. Shareholders of record on Friday, May 24th were given a $1.14 dividend. The ex-dividend date of this dividend was Thursday, May 23rd. This represents a $4.56 dividend on an annualized basis and a yield of 2.80%. Cummins’s payout ratio is currently 34.47%.

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Cummins Profile

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.

Further Reading: Margin

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Institutional Ownership by Quarter for Cummins (NYSE:CMI)

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