Arete Wealth Advisors LLC Purchases Shares of 1,116 Cummins Inc. $CMI

Key Points

• Arete Wealth Advisors LLC has acquired a new position in Cummins Inc. worth approximately $350,000, highlighting increased institutional interest in the company.
• Insider trading activity was noted, with Vice President Luther E. Peters and CFO Mark Andrew Smith both selling shares, marking significant reductions in their ownership positions.
• Cummins recently increased its quarterly dividend to $2.00, reflecting a strong payout ratio of 37.61% and an annualized yield of 2.0%.

Arete Wealth Advisors LLC acquired a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 1,116 shares of the company's stock, valued at approximately $350,000.

Several other large investors have also bought and sold shares of the company. Brighton Jones LLC raised its holdings in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after acquiring an additional 83 shares during the last quarter. Focus Partners Wealth increased its holdings in Cummins by 82.3% in the 4th quarter. Focus Partners Wealth now owns 25,165 shares of the company's stock worth $8,773,000 after buying an additional 11,362 shares in the last quarter. Janus Henderson Group PLC lifted its stake in Cummins by 19.2% during the 4th quarter. Janus Henderson Group PLC now owns 94,641 shares of the company's stock valued at $33,008,000 after acquiring an additional 15,271 shares during the period. LMR Partners LLP boosted its holdings in shares of Cummins by 194.2% during the 4th quarter. LMR Partners LLP now owns 3,021 shares of the company's stock valued at $1,053,000 after acquiring an additional 1,994 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Cummins by 80.0% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 51,928 shares of the company's stock worth $18,102,000 after acquiring an additional 23,078 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Truist Financial increased their price objective on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Citigroup raised their price target on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and increased their target price for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Barclays boosted their price target on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Cummins has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Insider Buying and Selling at Cummins

In other news, Director Karen H. Quintos sold 1,307 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total value of $529,766.31. Following the transaction, the director directly owned 5,227 shares in the company, valued at $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the sale, the vice president directly owned 20,738 shares in the company, valued at $8,354,925.44. This trade represents a 19.43% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,039 shares of company stock valued at $10,385,075. 0.41% of the stock is currently owned by corporate insiders.

Cummins Stock Performance

Shares of NYSE CMI traded down $0.19 during trading on Friday, hitting $410.84. The company had a trading volume of 935,925 shares, compared to its average volume of 656,118. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $413.77. 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 firm has a market capitalization of $56.61 billion, a P/E ratio of 19.32, a price-to-earnings-growth ratio of 1.99 and a beta of 1.02. The stock has a 50 day simple moving average of $378.17 and a 200 day simple moving average of $337.46.

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

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Friday, August 22nd. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is currently 37.61%.

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.