Cummins Inc. (NYSE:CMI) Shares Sold by Applied Finance Capital Management LLC

Key Points

• Applied Finance Capital Management LLC significantly reduced its stake in Cummins Inc. by 60.4%, selling 81,205 shares and ending up with 53,141 shares valued at $16,656,000.
• Cummins recently reported $5.96 earnings per share for the last quarter, surpassing estimates, although the company's revenue decreased 2.7% year-over-year.
• The company announced a quarterly dividend increase from $1.82 to $2.00 per share, reflecting a 2.17% yield and a dividend payout ratio of 36.22%.

Applied Finance Capital Management LLC cut its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 60.4% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 53,141 shares of the company's stock after selling 81,205 shares during the quarter. Applied Finance Capital Management LLC's holdings in Cummins were worth $16,656,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Norges Bank purchased a new position in Cummins during the fourth quarter worth about $499,490,000. GAMMA Investing LLC raised its stake in shares of Cummins by 38,220.5% in the 1st quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock valued at $373,428,000 after acquiring an additional 1,188,276 shares during the period. Northern Trust Corp raised its stake in shares of Cummins by 15.1% in the 4th quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock valued at $656,418,000 after acquiring an additional 246,807 shares during the period. Neuberger Berman Group LLC raised its stake in shares of Cummins by 57.0% in the 4th quarter. Neuberger Berman Group LLC now owns 643,482 shares of the company's stock valued at $224,317,000 after acquiring an additional 233,694 shares during the period. Finally, Balyasny Asset Management L.P. raised its stake in shares of Cummins by 5,553.8% in the 4th quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock valued at $46,731,000 after acquiring an additional 131,681 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director John H. Stone bought 1,000 shares of the stock in a transaction dated Friday, May 16th. The stock was acquired at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the acquisition, the director owned 2,441 shares in the company, valued at approximately $810,607.28. This represents a 69.40% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.41% of the stock is owned by company insiders.

Cummins Stock Down 1.2%

NYSE CMI traded down $4.38 on Tuesday, hitting $366.32. 1,027,023 shares of the stock were exchanged, compared to its average volume of 875,856. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.40. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $387.90. The company has a market cap of $50.46 billion, a PE ratio of 18.22, a PEG ratio of 2.05 and a beta of 1.03. The company has a 50-day moving average price of $331.07 and a 200-day moving average price of $330.80.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Monday, May 5th. The company reported $5.96 EPS for the quarter, topping the consensus estimate of $4.92 by $1.04. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The company had revenue of $8.17 billion during the quarter, compared to analysts' expectations of $8.22 billion. During the same quarter in the previous year, the business posted $5.08 EPS. The firm's revenue was down 2.7% on a year-over-year basis. Sell-side 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 issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 2.18%. The ex-dividend date of this dividend is Friday, August 22nd. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 36.22%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on CMI. Truist Financial reduced their price target on shares of Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a research note on Tuesday, April 8th. Morgan Stanley boosted their price target on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday, May 6th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and boosted their price target for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. JPMorgan Chase & Co. boosted their price target on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Finally, Citigroup reissued a "buy" rating and issued a $360.00 price target (up from $350.00) on shares of Cummins in a research note on Tuesday, June 24th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $361.92.

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.