Cummins Inc. $CMI Shares Acquired by Fuller & Thaler Asset Management Inc.

Key Points

• Fuller & Thaler Asset Management Inc. increased its stake in Cummins Inc. by 16.0%, owning 6,769 shares valued at approximately $2.12 million at the end of the first quarter.
• Multiple hedge funds have recently acquired stakes in Cummins, contributing to institutional investors holding 83.46% of the company’s stock.
• Cummins has raised its quarterly dividend from $1.82 to $2.00, representing an annualized yield of 2.0% for investors of record on August 22nd.

Fuller & Thaler Asset Management Inc. lifted its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 16.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 6,769 shares of the company's stock after buying an additional 935 shares during the period. Fuller & Thaler Asset Management Inc.'s holdings in Cummins were worth $2,122,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Olde Wealth Management LLC acquired a new stake in Cummins in the 1st quarter valued at $30,000. Capital A Wealth Management LLC bought a new stake in shares of Cummins during the fourth quarter valued at approximately $32,000. Opal Wealth Advisors LLC bought a new stake in shares of Cummins during the 1st quarter worth about $37,000. Richardson Financial Services Inc. bought a new stake in Cummins in the first quarter worth about $39,000. Finally, Costello Asset Management INC acquired a new stake in Cummins during the 1st quarter worth about $40,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

CMI has been the subject of a number of recent analyst reports. Morgan Stanley upped their target price on Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and upped their price target for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Robert W. Baird lifted their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Citigroup boosted their target price on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Finally, Truist Financial boosted their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Seven investment 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's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $370.83.

Insiders Place Their Bets

In related news, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction that occurred 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 sale, the vice president owned 7,693 shares of the company's stock, valued at $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction that occurred 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 owned 31,582 shares in the company, valued at $12,790,710. This represents a 17.07% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 24,179 shares of company stock valued at $9,636,871. Corporate insiders own 0.41% of the company's stock.

Cummins Price Performance

Shares of Cummins stock opened at $396.1750 on Thursday. The stock's fifty day moving average is $351.98 and its 200 day moving average is $333.95. The stock has a market cap of $54.59 billion, a P/E ratio of 18.63, a P/E/G ratio of 1.96 and a beta of 1.02. Cummins Inc. has a one year low of $260.02 and a one year high of $408.38. 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 (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business 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 EPS. The company's revenue for the quarter was down 1.7% on a year-over-year basis. Sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 2.0%. The ex-dividend date is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is presently 34.23%.

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.

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