Cummins Inc. $CMI Shares Acquired by Sara Bay Financial

Key Points

• Sara Bay Financial increased its stake in Cummins Inc. by 11.6% during the 2nd quarter, now holding 5,879 shares valued at approximately $1.93 million.
• Insider trading activity included CFO Mark Andrew Smith selling 1,580 shares and Director Karen H. Quintos selling 1,307 shares, indicating a decrease in their ownership stakes.
• Several analysts upgraded Cummins' stock rating, with the average target price boosted to $393.57, reflecting a positive outlook on the company's future performance.

Sara Bay Financial lifted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 11.6% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 5,879 shares of the company's stock after buying an additional 612 shares during the quarter. Cummins makes up about 0.7% of Sara Bay Financial's holdings, making the stock its 16th largest position. Sara Bay Financial's holdings in Cummins were worth $1,925,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in CMI. GAMMA Investing LLC raised its stake in Cummins by 38,220.5% in the 1st 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 last quarter. Raymond James Financial Inc. raised its stake in 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 purchasing an additional 817,384 shares during the last quarter. AQR Capital Management LLC raised its stake in Cummins by 70.9% in the 1st quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock valued at $314,942,000 after purchasing an additional 424,294 shares during the last quarter. Nuveen LLC acquired a new position in Cummins in the 1st quarter valued at about $109,120,000. Finally, Vanguard Group Inc. raised its stake in 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 purchasing an additional 321,823 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling

In other news, CFO Mark Andrew Smith sold 1,580 shares of the 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 completion of the sale, the chief financial officer owned 31,582 shares of the company's stock, valued at $13,232,858. This represents a 4.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director directly owned 5,227 shares of the company's stock, valued at $2,118,659.91. The trade was a 20.00% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 35,119 shares of company stock valued at $14,159,885. 0.41% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on CMI. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Citigroup boosted their target price on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a research note on Tuesday. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Finally, Truist Financial boosted their target price 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. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $393.57.

Cummins Stock Down 0.3%

Shares of CMI opened at $423.78 on Wednesday. The firm has a market cap of $58.39 billion, a PE ratio of 19.92, a price-to-earnings-growth ratio of 2.05 and a beta of 1.02. The company's fifty day moving average is $389.93 and its two-hundred day moving average is $340.54. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $432.50. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the business earned $5.26 EPS. Analysts forecast 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 was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a dividend of $2.00 per share. This is an increase 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 was Friday, August 22nd. Cummins's payout ratio is presently 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.

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