Baird Financial Group Inc. Buys 18,294 Shares of Cummins Inc. $CMI

Key Points

• Baird Financial Group Inc. has raised its stake in Cummins Inc. by 43.1%, acquiring an additional 18,294 shares during the first quarter, bringing its total holdings to 60,703 shares valued at $19.03 million.
• The company's recent earnings report indicates a EPS of $6.43, surpassing estimates, despite a 1.7% decline in quarterly revenue compared to the previous year.
• Cummins has declared a quarterly dividend of $2.00 per share, marking an increase from the previous $1.82, giving a new annualized dividend yield of 2.0%.

Baird Financial Group Inc. lifted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 43.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 60,703 shares of the company's stock after purchasing an additional 18,294 shares during the quarter. Baird Financial Group Inc.'s holdings in Cummins were worth $19,027,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of CMI. Olde Wealth Management LLC bought a new position in Cummins in the 1st quarter worth about $30,000. Accredited Wealth Management LLC bought a new position in Cummins in the 1st quarter worth about $31,000. Capital A Wealth Management LLC bought a new position in Cummins in the 4th quarter worth about $32,000. Opal Wealth Advisors LLC bought a new position in Cummins in the 1st quarter worth about $37,000. Finally, Richardson Financial Services Inc. bought a new position in Cummins in the 1st quarter worth about $39,000. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

CMI has been the topic of a number of analyst reports. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Barclays upped their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Finally, Citigroup boosted their target price on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Insider Buying and Selling at Cummins

In other Cummins news, VP Amy Rochelle Davis sold 5,002 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the sale, the vice president directly owned 20,738 shares in the company, valued at $8,354,925.44. The trade was a 19.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,039 shares of company stock worth $10,385,075. 0.41% of the stock is owned by corporate insiders.

Cummins Stock Performance

NYSE:CMI traded down $0.80 during mid-day trading on Friday, reaching $400.13. The company's stock had a trading volume of 864,159 shares, compared to its average volume of 706,473. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The firm's fifty day moving average price is $370.88 and its two-hundred day moving average price is $336.36. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The stock has a market cap of $55.13 billion, a P/E ratio of 18.81, a PEG ratio of 1.94 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its 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 during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.Cummins's revenue was down 1.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $5.26 EPS. On average, equities analysts forecast 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 was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a dividend of $2.00 per share. The ex-dividend date was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is presently 37.61%.

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.