Cummins Inc. $CMI Shares Acquired by Brandywine Global Investment Management LLC

Key Points

• Brandywine Global Investment Management LLC increased its holdings in Cummins Inc. by 13.5%, acquiring an additional 11,263 shares during the first quarter, bringing its total ownership to approximately 94,539 shares valued at $29,632,000.
• Cummins Inc. has declared a quarterly dividend of $2.00 per share, up from the previous quarterly dividend of $1.82, representing a 2.0% yield and a payout ratio of 37.61%.
• Despite a 1.7% year-over-year revenue decline, Cummins reported earnings per share of $6.43, exceeding estimates and demonstrating a net margin of 8.72%.

Brandywine Global Investment Management LLC lifted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 13.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 94,539 shares of the company's stock after buying an additional 11,263 shares during the quarter. Brandywine Global Investment Management LLC owned approximately 0.07% of Cummins worth $29,632,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in the stock. Vanguard Group Inc. grew its position in shares of Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after buying an additional 321,823 shares in the last quarter. Northern Trust Corp grew its position in shares of Cummins by 15.1% during the fourth quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock worth $656,418,000 after buying an additional 246,807 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Cummins by 6.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock worth $566,856,000 after buying an additional 99,009 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Cummins by 0.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,585,802 shares of the company's stock worth $552,820,000 after buying an additional 12,722 shares in the last quarter. Finally, Royal Bank of Canada grew its position in shares of Cummins by 3.7% during the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock worth $443,169,000 after buying an additional 44,907 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Ratings Changes

CMI has been the topic of a number of recent research reports. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. JPMorgan Chase & Co. raised their price target on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 6th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Evercore ISI restated an "outperform" rating on shares of Cummins in a research report on Tuesday. Finally, Barclays raised their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Seven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Cummins presently has a consensus rating of "Hold" and a consensus target price of $370.83.

Insiders Place Their Bets

In related news, 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 value of $2,632,500.00. Following the completion of the sale, the chief financial officer owned 31,582 shares of the company's stock, valued at $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of the company's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director directly owned 5,227 shares of the company's stock, valued at $2,118,659.91. The trade was a 20.00% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 24,179 shares of company stock valued at $9,636,871. Corporate insiders own 0.41% of the company's stock.

Cummins Stock Performance

Shares of Cummins stock traded down $4.5370 during trading on Wednesday, hitting $397.6730. 531,740 shares of the stock were exchanged, compared to its average volume of 882,846. The stock's fifty day moving average is $350.54 and its 200 day moving average is $333.52. The stock has a market cap of $54.80 billion, a PE ratio of 18.71, a P/E/G ratio of 1.96 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping the consensus estimate 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 net margin of 8.72% and a return on equity of 26.96%. The company's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.26 earnings per share. As a group, sell-side analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, August 22nd. Cummins's payout ratio is currently 34.23%.

Cummins Company 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.