Community Trust & Investment Co. Purchases Shares of 10,343 Cummins Inc. $CMI

Key Points

• Community Trust & Investment Co. acquired 10,343 shares of Cummins Inc., valued at approximately $3,387,000, in the second quarter of the year.
• Insider selling included CFO Mark Andrew Smith and Director Karen H. Quintos, who sold shares at prices around $405, resulting in significant decreases in their ownership percentages.
• Analysts have recently upgraded Cummins from "hold" to "buy," with price targets raised up to $500 by Melius Research, indicating positive market sentiment.

Community Trust & Investment Co. bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 10,343 shares of the company's stock, valued at approximately $3,387,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Bank of Jackson Hole Trust raised its stake in Cummins by 1.2% in the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock worth $887,000 after buying an additional 33 shares in the last quarter. Scotia Capital Inc. increased its position in shares of Cummins by 0.5% during the first quarter. Scotia Capital Inc. now owns 6,714 shares of the company's stock worth $2,104,000 after purchasing an additional 34 shares in the last quarter. Van Hulzen Asset Management LLC increased its position in shares of Cummins by 1.2% during the first quarter. Van Hulzen Asset Management LLC now owns 2,781 shares of the company's stock worth $872,000 after purchasing an additional 34 shares in the last quarter. PKS Advisory Services LLC increased its position in shares of Cummins by 2.4% during the first quarter. PKS Advisory Services LLC now owns 1,497 shares of the company's stock worth $469,000 after purchasing an additional 35 shares in the last quarter. Finally, Ascent Group LLC grew its holdings in shares of Cummins by 2.7% during the fourth quarter. Ascent Group LLC now owns 1,417 shares of the company's stock valued at $494,000 after buying an additional 37 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Trading Up 0.4%

Shares of Cummins stock traded up $1.69 during mid-day trading on Monday, hitting $425.33. The stock had a trading volume of 749,309 shares, compared to its average volume of 775,283. The firm has a 50-day moving average of $388.30 and a two-hundred day moving average of $339.96. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $428.96. 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 has a market cap of $58.61 billion, a P/E ratio of 20.00, a price-to-earnings-growth ratio of 2.05 and a beta of 1.02.

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

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. Cummins's dividend payout ratio is currently 37.61%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on CMI shares. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Barclays increased their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Finally, Robert W. Baird upped their price target on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Insiders Place Their Bets

In related news, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the transaction, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 35,119 shares of company stock worth $14,159,885. 0.41% of the stock is currently owned by company insiders.

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.