Birmingham Capital Management Co. Inc. AL Reduces Position in Cummins Inc. $CMI

Key Points

• Birmingham Capital Management Co. Inc. AL has reduced its stake in Cummins Inc. by 9.6%, now holding 15,060 shares valued at approximately $4.72 million.
• Analysts have a consensus rating of "Moderate Buy" for Cummins, with price targets ranging from $389.29 to $500.00.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, reflecting a positive shift from its previous dividend of $1.82.

Birmingham Capital Management Co. Inc. AL cut its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 9.6% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,060 shares of the company's stock after selling 1,600 shares during the period. Cummins makes up 1.8% of Birmingham Capital Management Co. Inc. AL's investment portfolio, making the stock its 21st biggest holding. Birmingham Capital Management Co. Inc. AL's holdings in Cummins were worth $4,720,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the company. Bank of Jackson Hole Trust boosted its stake in Cummins by 1.2% in the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock valued at $887,000 after acquiring an additional 33 shares during the last quarter. Scotia Capital Inc. boosted its stake in Cummins by 0.5% in the first quarter. Scotia Capital Inc. now owns 6,714 shares of the company's stock valued at $2,104,000 after acquiring an additional 34 shares during the last quarter. Van Hulzen Asset Management LLC boosted its stake in Cummins by 1.2% in the first quarter. Van Hulzen Asset Management LLC now owns 2,781 shares of the company's stock valued at $872,000 after acquiring an additional 34 shares during the last quarter. PKS Advisory Services LLC boosted its position in shares of Cummins by 2.4% during the first quarter. PKS Advisory Services LLC now owns 1,497 shares of the company's stock worth $469,000 after purchasing an additional 35 shares in the last quarter. Finally, Ascent Group LLC boosted its position in shares of Cummins by 2.7% during the fourth quarter. Ascent Group LLC now owns 1,417 shares of the company's stock worth $494,000 after purchasing an additional 37 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on CMI. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Truist Financial lifted their price target on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research report on Thursday, August 7th. Citigroup lifted their price target on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Nine research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Cummins presently has a consensus rating of "Moderate Buy" and an average target price of $389.29.

Cummins Stock Up 2.6%

Cummins stock opened at $404.89 on Thursday. The firm has a market capitalization of $55.79 billion, a PE ratio of 19.04, a P/E/G ratio of 1.91 and a beta of 1.02. The company's 50-day moving average is $375.00 and its 200-day moving average is $336.77. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data 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. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period in the previous year, the business earned $5.26 EPS. Sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

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

Insider Buying and Selling at Cummins

In related news, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of Cummins stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $12,790,710. The trade was a 17.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 26,039 shares of company stock worth $10,385,075 in the last ninety days. 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.

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