Cummins Inc. $CMI Shares Sold by Aberdeen Group plc

Key Points

• Aberdeen Group plc has reduced its stake in Cummins Inc. by 71.9%, selling 418,515 shares, and currently holds about 0.12% of the company's stock, valued at approximately $50.73 million.
• Cummins reported earnings of $6.43 per share for the last quarter, surpassing analyst expectations, with a year-over-year revenue decline of 1.7%.
• The company declared a quarterly dividend of $2.00 per share, increasing its annualized dividend yield to 2.0%, up from the previous $1.82 per share.

Aberdeen Group plc decreased its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 71.9% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 163,663 shares of the company's stock after selling 418,515 shares during the period. Aberdeen Group plc owned about 0.12% of Cummins worth $50,731,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently added to or reduced their stakes in the stock. Capital A Wealth Management LLC purchased a new stake in shares of Cummins in the 4th quarter worth $32,000. Olde Wealth Management LLC bought a new stake in shares of Cummins in the first quarter valued at about $30,000. Opal Wealth Advisors LLC bought a new stake in shares of Cummins in the first quarter valued at about $37,000. Richardson Financial Services Inc. purchased a new stake in Cummins in the first quarter worth about $39,000. Finally, Costello Asset Management INC bought a new position in Cummins during the 1st quarter worth about $40,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Citigroup boosted their price target on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Robert W. Baird boosted their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Morgan Stanley increased their target price on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Finally, Barclays lifted their price target on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Seven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $370.83.

Cummins Stock Down 0.5%

NYSE CMI traded down $1.8750 during trading on Thursday, hitting $394.4750. The company's stock had a trading volume of 183,615 shares, compared to its average volume of 880,408. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The company has a market cap of $54.35 billion, a PE ratio of 18.55, a P/E/G ratio of 1.96 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The business's 50 day simple moving average is $351.98 and its 200-day simple moving average is $333.95.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) 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 firm had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. During the same quarter in the prior year, the company posted $5.26 earnings per share. The company's revenue for the quarter was down 1.7% compared to the same quarter last year. On average, equities analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

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

Insider Activity at Cummins

In other Cummins news, CFO Mark Andrew Smith sold 6,500 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. The trade was a 17.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the completion of the transaction, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 24,179 shares of company stock worth $9,636,871 in the last quarter. 0.41% of the stock is owned by insiders.

Cummins Profile

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.