Cummins (NYSE:CMI) VP Donald Jackson Sells 730 Shares

Key Points

• Insider sale: Cummins VP Donald Jackson sold 730 shares on May 14 at an average price of $710.92, totaling about $519,000. After the sale, he still held 8,316 shares worth roughly $5.9 million.
• Stock performance and valuation: CMI rose 0.9% to $716.04, near its 52-week high of $718.08, with a market cap of $98.81 billion and a P/E ratio of 37.12. Trading volume was below average during the session.
• Fundamentals and shareholder returns: Cummins beat quarterly earnings estimates with EPS of $6.15 versus $5.63 expected, while revenue came in slightly above forecasts at $8.40 billion. The company also announced a quarterly dividend of $2.00 per share, or $8.00 annualized.

Cummins Inc. (NYSE:CMI - Get Free Report) VP Donald Jackson sold 730 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the transaction, the vice president directly owned 8,316 shares in the company, valued at approximately $5,912,010.72. This represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Cummins Trading Up 0.9%

Cummins stock traded up $6.47 during midday trading on Thursday, reaching $716.04. The stock had a trading volume of 372,392 shares, compared to its average volume of 914,444. The stock's 50-day simple moving average is $595.91 and its 200 day simple moving average is $551.55. Cummins Inc. has a twelve month low of $307.90 and a twelve month high of $718.08. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The stock has a market capitalization of $98.81 billion, a PE ratio of 37.12, a price-to-earnings-growth ratio of 1.78 and a beta of 1.27.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $5.96 EPS. Analysts expect that Cummins Inc. will post 28.39 EPS for the current year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's dividend payout ratio (DPR) is currently 41.52%.

Institutional Trading of Cummins

Hedge funds have recently made changes to their positions in the stock. Mirae Asset Global Investments Co. Ltd. lifted its stake in Cummins by 8.4% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock valued at $13,107,000 after acquiring an additional 2,417 shares during the last quarter. Bailard Inc. raised its holdings in shares of Cummins by 7.2% during the 3rd quarter. Bailard Inc. now owns 59,830 shares of the company's stock valued at $25,270,000 after purchasing an additional 4,035 shares in the last quarter. Fisher Asset Management LLC lifted its stake in shares of Cummins by 2.8% in the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock valued at $1,422,121,000 after purchasing an additional 91,956 shares during the last quarter. Accredited Wealth Management LLC increased its position in Cummins by 3,100.0% during the third quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock worth $1,352,000 after buying an additional 3,100 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock valued at $612,715,000 after buying an additional 488,430 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have commented on CMI shares. Wolfe Research lowered Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective on the stock. in a research report on Monday, January 26th. Sanford C. Bernstein set a $600.00 target price on Cummins and gave the company a "market perform" rating in a report on Friday, February 6th. Truist Financial set a $815.00 price target on Cummins in a research report on Wednesday, May 6th. Robert W. Baird set a $700.00 price objective on shares of Cummins in a research note on Wednesday, May 6th. Finally, UBS Group set a $565.00 target price on shares of Cummins and gave the stock a "neutral" rating in a research report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $677.87.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest quarterly results were solid, with EPS of $6.15 beating expectations and revenue of $8.40 billion slightly above estimates, reinforcing confidence in the company’s operating momentum.
• Positive Sentiment: Analysts have become more bullish recently, with firms including Citigroup, Barclays, Evercore and Zacks raising targets or upgrading the stock, which can help support the share price. Article Title
• Positive Sentiment: Cummins declared a quarterly dividend of $2.00 per share, underscoring healthy cash generation and making the stock more attractive to income-focused investors.
• Neutral Sentiment: Shareholders backed the board, pay package and incentive plan at the annual meeting, removing a potential governance overhang. Article Title
• Neutral Sentiment: Recent coverage highlighted Cummins as a momentum name and a relative outperformer in the industrial space, but those stories are more commentary than a fresh business catalyst. Article Title
• Negative Sentiment: Several insiders, including VPs Jennifer Mary Bush and Donald G. Jackson plus insider Brett Michael Merritt, sold shares recently. While not necessarily a red flag, the cluster of insider selling may slightly temper enthusiasm. Article Title

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.