Charles Schwab Investment Management Inc. Sells 1,291 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• Charles Schwab Investment Management Inc. holds a $276.80 million stake in Cummins Inc., comprising approximately 0.64% of the company's shares after selling a small portion.
• Cummins recently reported an earnings per share (EPS) of $6.43 for the last quarter, exceeding analyst expectations of $5.21, but experienced a 1.7% revenue decline year-over-year.
• The company announced a quarterly dividend increase to $2.00 per share, marking a positive change from the previous dividend of $1.82, with a current dividend yield of 2.1%.

Charles Schwab Investment Management Inc. lessened its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 0.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 883,111 shares of the company's stock after selling 1,291 shares during the quarter. Charles Schwab Investment Management Inc. owned about 0.64% of Cummins worth $276,802,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. ASR Vermogensbeheer N.V. acquired a new position in Cummins in the 1st quarter worth approximately $9,826,000. Citizens Financial Group Inc. RI boosted its stake in shares of Cummins by 0.6% during the 1st quarter. Citizens Financial Group Inc. RI now owns 31,948 shares of the company's stock valued at $10,014,000 after buying an additional 178 shares during the period. WealthShield Partners LLC acquired a new stake in shares of Cummins during the 1st quarter valued at $1,267,000. Vanguard Group Inc. raised its holdings in shares of Cummins by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after purchasing an additional 321,823 shares in the last quarter. Finally, Wallington Asset Management LLC raised its holdings in shares of Cummins by 0.8% during the 1st quarter. Wallington Asset Management LLC now owns 34,348 shares of the company's stock valued at $10,766,000 after purchasing an additional 275 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, Director John H. Stone bought 1,000 shares of Cummins stock in a transaction dated Friday, May 16th. The shares were bought at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the transaction, the director owned 2,441 shares of the company's stock, valued at approximately $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Jennifer Mary Bush sold 520 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the transaction, the vice president owned 15,130 shares in the company, valued at $5,872,406.90. The trade was a 3.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.41% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts have recently weighed in on CMI shares. Evercore ISI cut their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a report on Monday, May 19th. Morgan Stanley raised their price target on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. Citigroup raised 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. 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. Finally, Truist Financial raised 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. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $370.83.

Cummins Price Performance

Shares of CMI traded up $10.00 during mid-day trading on Tuesday, reaching $398.31. The company had a trading volume of 774,355 shares, compared to its average volume of 888,135. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $399.09. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The company's 50-day moving average is $341.28 and its 200-day moving average is $331.35. The company has a market capitalization of $54.88 billion, a P/E ratio of 18.73, a P/E/G ratio of 1.88 and a beta of 1.02.

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, beating analysts' consensus estimates of $5.21 by $1.22. The firm 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%. The company'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 earnings per share. On average, equities analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The business also recently announced 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. The ex-dividend date is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. Cummins's dividend payout ratio (DPR) is currently 34.23%.

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.