Chevy Chase Trust Holdings LLC Raises Stock Position in Cummins Inc. $CMI

Key Points

• Chevy Chase Trust Holdings LLC increased its stake in Cummins Inc. by 0.9% during the second quarter, bringing their total holdings to 73,019 shares valued at approximately $23.9 million.
• Cummins reported $6.43 EPS for its latest quarter, exceeding analysts' expectations, with total revenue of $8.64 billion, although this was a 1.7% decline from the previous year.
• The company announced a quarterly dividend of $2.00, equating to an annualized yield of 1.9%, which will be paid on December 4th to shareholders of record on November 21st.

Chevy Chase Trust Holdings LLC boosted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 0.9% in the second quarter, according to its most recent disclosure with the SEC. The firm owned 73,019 shares of the company's stock after acquiring an additional 659 shares during the period. Chevy Chase Trust Holdings LLC owned about 0.05% of Cummins worth $23,914,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the stock. Olde Wealth Management LLC purchased a new position in Cummins in the 1st quarter valued at about $30,000. Accredited Wealth Management LLC acquired a new position in shares of Cummins during the first quarter valued at approximately $31,000. Richardson Financial Services Inc. purchased a new position in shares of Cummins in the first quarter valued at approximately $39,000. Costello Asset Management INC acquired a new stake in shares of Cummins in the first quarter worth approximately $40,000. Finally, Wealth Preservation Advisors LLC purchased a new stake in shares of Cummins during the first quarter worth approximately $41,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

NYSE:CMI opened at $411.84 on Friday. The company's 50-day moving average is $411.10 and its two-hundred day moving average is $352.98. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $440.51. 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 firm has a market capitalization of $56.75 billion, a price-to-earnings ratio of 19.36, a PEG ratio of 1.99 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $8.45 billion. During the same quarter last year, the firm earned $5.26 EPS. The business's revenue was down 1.7% compared to the same quarter last year. Analysts forecast that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 4th. Shareholders of record on Friday, November 21st will be given a $2.00 dividend. The ex-dividend date is Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. Cummins's payout ratio is currently 37.61%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Citigroup lifted their target price on shares of Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research note on Tuesday, September 23rd. Melius 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 note on Wednesday, September 3rd. JPMorgan Chase & Co. boosted their price target on shares of Cummins from $400.00 to $460.00 and gave the stock a "neutral" rating in a research report on Tuesday, October 14th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Cummins in a report on Tuesday, October 14th. Finally, Evercore ISI restated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $407.43.

Insiders Place Their Bets

In other Cummins news, CFO Mark Andrew Smith sold 8,000 shares of the company's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $439.30, for a total value of $3,514,400.00. Following the transaction, the chief financial officer owned 31,582 shares of the company's stock, valued at $13,873,972.60. This represents a 20.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the sale, the vice president owned 955 shares of the company's stock, valued at approximately $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 43,119 shares of company stock worth $17,674,285. Corporate insiders own 0.41% of the company's stock.

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.

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