American Century Companies Inc. Sells 83,466 Shares of Cummins Inc. $CMI

Key Points

• American Century Companies Inc. reduced its stake in Cummins Inc. by 18%, now holding 380,964 shares valued at approximately $119.41 million as of its latest SEC filing.
• Cummins recently announced a dividend increase to $2.00 per share, effective from September 4th, representing a 10% rise from the previous dividend of $1.82.
• The stock has shown strong performance, with Cummins reporting $6.43 EPS for its latest quarter, exceeding analyst estimates by $1.22, despite a 1.7% year-over-year revenue decline.

American Century Companies Inc. lowered its stake in Cummins Inc. (NYSE:CMI - Free Report) by 18.0% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 380,964 shares of the company's stock after selling 83,466 shares during the quarter. American Century Companies Inc. owned approximately 0.28% of Cummins worth $119,410,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Ethic Inc. increased its position in shares of Cummins by 10.8% in the first quarter. Ethic Inc. now owns 11,615 shares of the company's stock valued at $3,663,000 after acquiring an additional 1,135 shares during the last quarter. Brandywine Global Investment Management LLC increased its position in Cummins by 13.5% during the first quarter. Brandywine Global Investment Management LLC now owns 94,539 shares of the company's stock worth $29,632,000 after buying an additional 11,263 shares during the last quarter. Horizon Investments LLC increased its position in Cummins by 5.2% during the first quarter. Horizon Investments LLC now owns 1,975 shares of the company's stock worth $619,000 after buying an additional 98 shares during the last quarter. Fox Run Management L.L.C. acquired a new position in Cummins during the first quarter worth approximately $2,749,000. Finally, Hamlin Capital Management LLC increased its position in Cummins by 1.8% during the first quarter. Hamlin Capital Management LLC now owns 529,613 shares of the company's stock worth $166,002,000 after buying an additional 9,425 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analyst Weigh In

CMI has been the topic of a number of recent analyst reports. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Robert W. Baird upped their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. JPMorgan Chase & Co. upped their target price on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research report on Tuesday, May 6th. Truist Financial upped their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Finally, Barclays upped their target price on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Price Performance

NYSE CMI traded down $2.1360 on Thursday, hitting $394.2140. 726,358 shares of the company's stock were exchanged, compared to its average volume of 881,796. The stock has a 50-day moving average of $351.98 and a 200-day moving average of $333.95. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. The stock has a market cap of $54.32 billion, a price-to-earnings ratio of 18.53, a P/E/G ratio of 1.96 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the prior year, the company earned $5.26 earnings per share. The company's quarterly revenue was down 1.7% on a year-over-year basis. Analysts expect 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 will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is currently 34.23%.

Insider Buying and Selling

In other news, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the transaction, the vice president directly owned 20,738 shares in the company, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 24,179 shares of company stock worth $9,636,871 in the last ninety days. Insiders own 0.41% of the company's stock.

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.