Banco Bilbao Vizcaya Argentaria S.A. Reduces Stock Holdings in Cummins Inc. $CMI

Key Points

• Banco Bilbao Vizcaya Argentaria S.A. reduced its stake in Cummins Inc. by 91.5%, now owning only 3,318 shares after selling 35,747 during the first quarter.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00, representing an annualized payout of $8.00 and a yield of 2.0%.
• In its latest quarterly earnings, Cummins reported $6.43 EPS, exceeding estimates, with revenue of $8.64 billion, though down 1.7% year-over-year.

Banco Bilbao Vizcaya Argentaria S.A. reduced its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 91.5% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,318 shares of the company's stock after selling 35,747 shares during the quarter. Banco Bilbao Vizcaya Argentaria S.A.'s holdings in Cummins were worth $1,040,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Capital A Wealth Management LLC purchased a new stake in Cummins during the 4th quarter valued at $32,000. Olde Wealth Management LLC bought a new position in Cummins during the first quarter valued at $30,000. Opal Wealth Advisors LLC purchased a new stake in shares of Cummins in the first quarter valued at $37,000. Richardson Financial Services Inc. bought a new stake in shares of Cummins in the 1st quarter worth about $39,000. Finally, Costello Asset Management INC purchased a new position in shares of Cummins during the 1st quarter worth about $40,000. 83.46% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Robert W. Baird raised their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Wells Fargo & Company raised Cummins to an "overweight" rating in a research report on Monday, August 11th. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $370.83.

Cummins Stock Up 0.9%

Shares of CMI stock traded up $3.41 on Wednesday, hitting $401.87. The stock had a trading volume of 299,265 shares, compared to its average volume of 877,724. Cummins Inc. has a one year low of $260.02 and a one year high of $408.38. The business has a 50 day moving average price of $358.19 and a 200 day moving average price of $334.66. The company has a market cap of $55.37 billion, a PE ratio of 18.89, a P/E/G ratio of 1.91 and a beta of 1.02. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53.

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

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 2.0%. Cummins's payout ratio is 37.61%.

Insiders Place Their Bets

In other Cummins news, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president directly owned 955 shares of the company's stock, valued at approximately $384,158.30. The trade was a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the transaction, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 26,039 shares of company stock worth $10,385,075. Insiders own 0.41% of the company's stock.

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.