Royal Bank of Canada Sells 115,406 Shares of Cummins Inc. $CMI

Key Points

• Royal Bank of Canada has reduced its stake in Cummins Inc. by 9.1%, owning 1,155,873 shares valued at approximately $362 million as of its latest SEC filing.
• Cummins recently reported earnings of $6.43 per share, significantly exceeding analysts' expectations of $5.21, with quarterly revenues reaching $8.64 billion.
• The company has announced a quarterly dividend increase to $2.00 per share, representing a yield of 2.0% and an annualized total of $8.00.

Royal Bank of Canada lessened its stake in Cummins Inc. (NYSE:CMI - Free Report) by 9.1% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,155,873 shares of the company's stock after selling 115,406 shares during the period. Royal Bank of Canada owned about 0.84% of Cummins worth $362,297,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Retirement Planning Co of New England Inc. bought a new position in Cummins during the 1st quarter valued at approximately $313,000. Quarry LP bought a new position in Cummins during the 1st quarter valued at approximately $312,000. Baird Financial Group Inc. raised its position in Cummins by 43.1% during the 1st quarter. Baird Financial Group Inc. now owns 60,703 shares of the company's stock valued at $19,027,000 after purchasing an additional 18,294 shares during the last quarter. Pinnacle Wealth Planning Services Inc. raised its position in Cummins by 100.2% during the 1st quarter. Pinnacle Wealth Planning Services Inc. now owns 1,173 shares of the company's stock valued at $368,000 after purchasing an additional 587 shares during the last quarter. Finally, Vident Advisory LLC raised its position in Cummins by 64.1% during the 1st quarter. Vident Advisory LLC now owns 11,452 shares of the company's stock valued at $3,590,000 after purchasing an additional 4,474 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Insider Buying and Selling

In related news, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Robert Enright sold 1,860 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president directly owned 955 shares in the company, 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. Insiders sold 26,039 shares of company stock worth $10,385,075 in the last quarter. Company insiders own 0.41% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and increased their target price for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Robert W. Baird increased their target price on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a research note on Monday, August 11th. Melius upgraded 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. Finally, Barclays upped their price target on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Nine research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $389.29.

Cummins Stock Performance

Shares of NYSE CMI traded down $0.80 during midday trading on Friday, hitting $400.13. 864,151 shares of the stock traded hands, compared to its average volume of 872,427. The firm has a 50-day moving average of $369.39 and a two-hundred day moving average of $336.22. The firm has a market capitalization of $55.13 billion, a P/E ratio of 18.81, a PEG ratio of 1.89 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 one year low of $260.02 and a one year 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 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. The firm had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company's revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.26 EPS. On average, equities analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a $2.00 dividend. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 37.61%.

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.