Cummins Inc. $CMI Shares Purchased by Verdence Capital Advisors LLC

Key Points

• Verdence Capital Advisors LLC increased its stake in Cummins Inc. by 13.5%, owning a total of 8,830 shares valued at approximately $2.89 million as of the latest quarter.
• Several analysts have upgraded Cummins' stock ratings, with Truist Financial raising its price target from $380 to $434 and Zacks Research upgrading it to a strong-buy rating.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00 per share, providing investors with a 1.9% yield based on the annualized total.

Verdence Capital Advisors LLC increased its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 13.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 8,830 shares of the company's stock after purchasing an additional 1,052 shares during the period. Verdence Capital Advisors LLC's holdings in Cummins were worth $2,892,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of CMI. Orca Wealth Management LLC grew its position in Cummins by 0.6% during the second quarter. Orca Wealth Management LLC now owns 4,609 shares of the company's stock worth $1,509,000 after buying an additional 28 shares during the period. V Square Quantitative Management LLC grew its position in Cummins by 1.0% during the second quarter. V Square Quantitative Management LLC now owns 3,285 shares of the company's stock worth $1,076,000 after buying an additional 31 shares during the period. Bank of Jackson Hole Trust grew its position in Cummins by 1.2% during the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock worth $887,000 after buying an additional 33 shares during the period. Scotia Capital Inc. grew its position in Cummins by 0.5% during the first quarter. Scotia Capital Inc. now owns 6,714 shares of the company's stock worth $2,104,000 after buying an additional 34 shares during the period. Finally, Van Hulzen Asset Management LLC grew its position in shares of Cummins by 1.2% in the first quarter. Van Hulzen Asset Management LLC now owns 2,781 shares of the company's stock valued at $872,000 after purchasing an additional 34 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

CMI has been the topic of several research reports. Truist Financial increased their price target on shares of Cummins from $380.00 to $434.00 and gave the company a "hold" rating in a research report on Wednesday. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Zacks Research upgraded shares of Cummins from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 8th. Finally, Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and an average price target of $397.43.

Insider Activity at Cummins

In other Cummins news, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares in the company, valued at $8,354,925.44. This trade represents a 19.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the transaction, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 43,119 shares of company stock valued at $17,674,285 over the last 90 days. 0.41% of the stock is currently owned by insiders.

Cummins Stock Performance

Shares of CMI opened at $413.28 on Monday. 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 company has a market capitalization of $56.94 billion, a price-to-earnings ratio of 19.43, a PEG ratio of 1.99 and a beta of 1.04. The company's 50 day simple moving average is $407.21 and its 200 day simple moving average is $349.70. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $440.51.

Cummins (NYSE:CMI - Get Free Report) last announced 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. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company's quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.26 earnings per share. On average, sell-side analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company 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. The ex-dividend date of this dividend was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. Cummins's payout ratio is currently 37.61%.

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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