Cummins Inc. $CMI is Marshfield Associates' 6th Largest Position

Key Points

• Marshfield Associates has increased its stake in Cummins Inc. by 0.3%, owning over 1 million shares, which represent 7.1% of its investment portfolio.
• Analysts have raised price targets for Cummins with Goldman Sachs upgrading it to a buy rating and setting a target of $431.00, while Citigroup raised theirs from $380.00 to $425.00.
• Cummins has announced a quarterly dividend increase to $2.00 per share, reflecting a boost from the previous $1.82, with a total annualized yield of 2.0%.

Marshfield Associates increased its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 0.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,050,534 shares of the company's stock after acquiring an additional 3,637 shares during the period. Cummins comprises 7.1% of Marshfield Associates' holdings, making the stock its 6th largest position. Marshfield Associates owned approximately 0.76% of Cummins worth $329,279,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CMI. GAMMA Investing LLC grew its holdings in Cummins by 38,220.5% in the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock valued at $373,428,000 after purchasing an additional 1,188,276 shares during the period. Raymond James Financial Inc. raised its holdings in shares of Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after buying an additional 817,384 shares during the period. Nuveen LLC purchased a new stake in Cummins during the 1st quarter worth about $109,120,000. Vanguard Group Inc. increased its holdings in shares of Cummins by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after acquiring an additional 321,823 shares during the last quarter. Finally, Balyasny Asset Management L.P. increased its holdings in shares of Cummins by 5,553.8% in the 4th quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock valued at $46,731,000 after acquiring an additional 131,681 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the sale, the director owned 5,227 shares of the company's stock, valued at $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the completion of the sale, the vice president directly owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 26,039 shares of company stock valued at $10,385,075. 0.41% of the stock is currently owned by company insiders.

Cummins Price Performance

Shares of NYSE CMI traded up $9.25 during trading on Thursday, reaching $401.38. The company had a trading volume of 762,634 shares, compared to its average volume of 871,715. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $408.38. The stock has a market capitalization of $55.31 billion, a PE ratio of 18.87, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The stock has a 50-day moving average price of $367.86 and a two-hundred day moving average price of $336.03. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the previous year, the firm posted $5.26 earnings per share. The business's revenue for the quarter was down 1.7% compared to the same quarter last year. As a group, sell-side analysts predict that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a $2.00 dividend. This is an increase 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%. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is presently 37.61%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Evercore ISI restated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Truist Financial increased their price objective on 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 Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Finally, Robert W. Baird lifted their price target on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $389.29.

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.