Cummins Inc. $CMI Shares Acquired by Goldman Sachs Group Inc.

Key Points

• Goldman Sachs Group Inc. increased its holdings in Cummins Inc. by 74.2% during the first quarter, owning approximately 0.54% of the company worth $234.9 million.
• Cummins recently reported earnings of $6.43 EPS for the quarter, significantly surpassing the consensus estimate of $5.21, despite a 1.7% decline in revenue year-over-year.
• The company increased its quarterly dividend to $2.00 per share, up from $1.82, resulting in an annualized dividend of $8.00 and a yield of 2.0%.

Goldman Sachs Group Inc. increased its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 74.2% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 749,449 shares of the company's stock after acquiring an additional 319,277 shares during the quarter. Goldman Sachs Group Inc. owned approximately 0.54% of Cummins worth $234,907,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. Olde Wealth Management LLC acquired a new position in Cummins in the 1st quarter valued at $30,000. Accredited Wealth Management LLC acquired a new position in Cummins in the 1st quarter valued at $31,000. Capital A Wealth Management LLC acquired a new position in Cummins in the 4th quarter valued at $32,000. Opal Wealth Advisors LLC acquired a new position in Cummins in the 1st quarter valued at $37,000. Finally, Richardson Financial Services Inc. acquired a new position in Cummins in the 1st quarter valued at $39,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Stock Performance

NYSE:CMI opened at $394.83 on Wednesday. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The firm's fifty day simple moving average is $373.56 and its 200-day simple moving average is $336.29. The stock has a market cap of $54.40 billion, a PE ratio of 18.56, a price-to-earnings-growth ratio of 1.92 and a beta of 1.02.

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

Cummins Increases Dividend

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

Insider Buying and Selling at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction that occurred on Thursday, August 14th. The shares were 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 represents a 19.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the sale, 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 disclosure for this sale can be found here. Over the last 90 days, insiders sold 26,039 shares of company stock worth $10,385,075. 0.41% of the stock is currently owned by insiders.

Analysts Set New Price Targets

CMI has been the topic of several recent research reports. Robert W. Baird boosted their price objective on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Truist Financial boosted their price objective on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research note on Wednesday, September 3rd. Citigroup boosted their price objective on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Finally, Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Nine equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

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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