Advisors Asset Management Inc. Buys 9,810 Shares of Cummins Inc. $CMI

Key Points

• Advisors Asset Management Inc. increased its stake in Cummins Inc. by 30.7%, now holding 41,739 shares valued at approximately $13.08 million following the acquisition of over 9,000 shares.
• Several institutional investors also boosted their stakes in Cummins in the last quarter, with ownership by such entities now at 83.46% of the company's stock.
• Cummins announced a quarterly dividend increase from $1.82 to $2.00, resulting in an annualized yield of 2.0% for shareholders.

Advisors Asset Management Inc. grew its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 30.7% in the first quarter, according to its most recent filing with the SEC. The fund owned 41,739 shares of the company's stock after acquiring an additional 9,810 shares during the period. Advisors Asset Management Inc.'s holdings in Cummins were worth $13,083,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in shares of Cummins by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after acquiring an additional 321,823 shares during the last quarter. Northern Trust Corp lifted its position in shares of Cummins by 1.2% during the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock valued at $597,170,000 after acquiring an additional 22,202 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Cummins by 6.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock valued at $566,856,000 after acquiring an additional 99,009 shares during the last quarter. Raymond James Financial Inc. lifted its position in shares of Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after acquiring an additional 817,384 shares during the last quarter. Finally, Royal Bank of Canada lifted its position in shares of Cummins by 3.7% during the 4th quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock valued at $443,169,000 after acquiring an additional 44,907 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Down 0.2%

Shares of NYSE CMI traded down $0.80 during mid-day trading on Friday, reaching $400.13. The company had a trading volume of 864,159 shares, compared to its average volume of 706,473. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $408.38. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The stock has a market capitalization of $55.13 billion, a PE ratio of 18.81, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The stock's 50 day moving average is $370.88 and its 200-day moving average is $336.01.

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, topping analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for 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%. Cummins's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period in the prior year, the business posted $5.26 earnings per share. As a group, equities analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 2.0%. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Insider Activity

In other Cummins news, VP Robert Enright sold 1,860 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the completion of the sale, the vice president directly owned 955 shares in the company, valued at $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of the company's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the sale, the director owned 5,227 shares of the company's stock, valued at $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 26,039 shares of company stock valued at $10,385,075. Corporate insiders own 0.41% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. Melius upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research report on Wednesday. Truist Financial boosted their target price on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Nine investment 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's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Cummins Company 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.