Cardinal Capital Management Inc. Trims Holdings in Cummins Inc. $CMI

Key Points

• Cardinal Capital Management Inc. reduced its stake in Cummins Inc. by 2.8%, holding approximately 0.08% of the company, valued at around $35.15 million.
• Cummins recently declared a quarterly dividend of $2.00 per share, which is an increase from the previous $1.82 dividend, giving an annualized yield of 1.9%.
• Analysts have been bullish on Cummins, with upgrades from firms like Goldman Sachs and price targets raised, reflecting an average target price of $389.29 for the stock.

Cardinal Capital Management Inc. lessened its stake in Cummins Inc. (NYSE:CMI - Free Report) by 2.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 107,330 shares of the company's stock after selling 3,119 shares during the period. Cummins comprises about 1.1% of Cardinal Capital Management Inc.'s portfolio, making the stock its 29th biggest position. Cardinal Capital Management Inc. owned 0.08% of Cummins worth $35,151,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Fox Run Management L.L.C. bought a new stake in shares of Cummins during the 1st quarter valued at about $2,749,000. Alpha Cubed Investments LLC bought a new stake in shares of Cummins during the 1st quarter valued at about $440,000. Assenagon Asset Management S.A. boosted its position in shares of Cummins by 8.9% during the 1st quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after purchasing an additional 1,114 shares in the last quarter. Invesco Ltd. boosted its position in shares of Cummins by 11.6% during the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after purchasing an additional 126,362 shares in the last quarter. Finally, Artemis Investment Management LLP boosted its position in shares of Cummins by 19.1% during the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock valued at $2,428,000 after purchasing an additional 1,241 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on CMI shares. Truist Financial upped their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a report on Monday, August 11th. Citigroup increased their price target on Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a report on Tuesday. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and increased their price target for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Melius upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a report on Wednesday, September 3rd. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $393.57.

Cummins Stock Performance

NYSE:CMI traded down $1.34 during trading hours on Tuesday, reaching $423.51. The stock had a trading volume of 439,998 shares, compared to its average volume of 872,947. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The stock has a 50 day simple moving average of $388.30 and a 200 day simple moving average of $339.96. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $432.50. The stock has a market cap of $58.36 billion, a P/E ratio of 19.91, a price-to-earnings-growth ratio of 2.05 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS 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 firm had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same period last year, the company earned $5.26 earnings per share. The business's revenue for the quarter was down 1.7% on a year-over-year basis. On average, research analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Friday, August 22nd. Cummins's dividend payout ratio is 37.61%.

Insider Activity at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the sale, the vice president owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark Andrew Smith sold 1,580 shares of Cummins stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $419.00, for a total value of $662,020.00. Following the sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $13,232,858. This represents a 4.76% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,119 shares of company stock valued at $14,159,885 in the last ninety days. 0.41% of the stock is currently owned by corporate insiders.

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.