Cummins Inc. (NYSE:CMI) CFO Mark Andrew Smith Sells 6,000 Shares

Key Points

• Cummins Inc. CFO Mark Andrew Smith sold 6,000 shares at an average price of $395.00, totaling $2,370,000.00, reducing his position by 15.97%.
• The company recently declared a quarterly dividend increase from $1.82 to $2.00, representing an annualized payout of $8.00 and a dividend yield of 2.0%.
• Cummins reported $6.43 earnings per share for the last quarter, exceeding estimates by $1.22, with revenue of $8.64 billion.

Cummins Inc. (NYSE:CMI - Get Free Report) CFO Mark Andrew Smith sold 6,000 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $395.00, for a total value of $2,370,000.00. Following the sale, the chief financial officer owned 31,582 shares in the company, valued at $12,474,890. The trade was a 15.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link.

Mark Andrew Smith also recently made the following trade(s):

• On Wednesday, August 13th, Mark Andrew Smith sold 6,500 shares of Cummins stock. The shares were sold at an average price of $405.00, for a total value of $2,632,500.00.

Cummins Stock Performance

Shares of CMI traded down $6.35 during mid-day trading on Friday, hitting $398.45. 701,253 shares of the company's stock were exchanged, compared to its average volume of 1,050,250. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. The stock's 50-day simple moving average is $347.51 and its 200-day simple moving average is $332.91. The firm has a market cap of $54.90 billion, a price-to-earnings ratio of 18.73, a price-to-earnings-growth ratio of 1.95 and a beta of 1.02. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The firm had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company's revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.26 EPS. On average, equities research analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be issued a dividend of $2.00 per share. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's dividend payout ratio is currently 34.23%.

Institutional Trading of Cummins

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Evergreen Capital Management LLC grew its position in shares of Cummins by 3.4% in the 2nd quarter. Evergreen Capital Management LLC now owns 23,913 shares of the company's stock worth $7,831,000 after buying an additional 796 shares during the last quarter. 44 Wealth Management LLC lifted its stake in shares of Cummins by 0.8% in the 2nd quarter. 44 Wealth Management LLC now owns 4,338 shares of the company's stock valued at $1,421,000 after purchasing an additional 36 shares during the period. Tower Research Capital LLC TRC lifted its stake in shares of Cummins by 3.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,022 shares of the company's stock valued at $1,972,000 after purchasing an additional 200 shares during the period. MUFG Securities EMEA plc raised its position in Cummins by 1.4% during the second quarter. MUFG Securities EMEA plc now owns 28,404 shares of the company's stock worth $9,303,000 after acquiring an additional 405 shares during the period. Finally, Resources Management Corp CT ADV raised its position in Cummins by 2.3% during the second quarter. Resources Management Corp CT ADV now owns 3,177 shares of the company's stock worth $1,040,000 after acquiring an additional 72 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on CMI shares. Evercore ISI reduced their price target on Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a research report on Monday, May 19th. Barclays upped their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Truist Financial increased their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Morgan Stanley increased their price objective on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday, May 6th. Finally, Robert W. Baird increased their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $370.83.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.