Cummins (NYSE:CMI) VP Amy Rochelle Davis Sells 5,002 Shares

Key Points

• Cummins Inc. VP Amy Rochelle Davis sold 5,002 shares of the company's stock for a total of $2,015,205.76, reducing her ownership by 19.43%.
• The company reported quarterly earnings of $6.43 EPS, surpassing estimates and generating $8.64 billion in revenue, though this was down 1.7% compared to the previous year.
• Cummins recently increased its quarterly dividend to $2.00 per share, raising the annual payout to $8.00 with a dividend yield of 2.0%.

Cummins Inc. (NYSE:CMI - Get Free Report) VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Cummins Stock Down 1.5%

Shares of Cummins stock traded down $6.0350 on Wednesday, hitting $396.1750. 847,817 shares of the company's stock traded hands, compared to its average volume of 967,699. The stock has a market cap of $54.59 billion, a P/E ratio of 18.63, a PEG ratio of 1.96 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. The firm's 50-day moving average is $351.98 and its 200 day moving average is $333.95. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $408.38.

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

Cummins Increases Dividend

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

Institutional Investors Weigh In On Cummins

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in Cummins by 2.0% in the second quarter. Vanguard Group Inc. now owns 17,628,149 shares of the company's stock worth $5,773,219,000 after buying an additional 344,680 shares during the period. State Street Corp increased its position in Cummins by 1.4% in the second quarter. State Street Corp now owns 6,539,191 shares of the company's stock worth $2,141,585,000 after buying an additional 92,073 shares during the period. Geode Capital Management LLC increased its position in Cummins by 1.3% in the second quarter. Geode Capital Management LLC now owns 3,499,240 shares of the company's stock worth $1,141,138,000 after buying an additional 43,720 shares during the period. Fisher Asset Management LLC increased its position in Cummins by 4.5% in the second quarter. Fisher Asset Management LLC now owns 3,275,045 shares of the company's stock worth $1,072,578,000 after buying an additional 142,058 shares during the period. Finally, Northern Trust Corp increased its position in Cummins by 1.2% in the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after buying an additional 22,202 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently commented on CMI. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday. JPMorgan Chase & Co. upped their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research report on Tuesday, May 6th. Citigroup upped their price target on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Truist Financial upped their price target on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Finally, Morgan Stanley upped their price target on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price 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.