Cummins Inc. $CMI Shares Sold by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP cut its Cummins stake by 17.9% in the second quarter, selling 3,698 shares and retaining 17,014 shares valued at approximately $12.1 million. Institutional investors collectively own 83.46% of Cummins.
• Analysts remain broadly positive, with 11 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $764.54.
• Cummins reported quarterly EPS of $6.73, below the $7.21 analyst estimate, despite revenue of $9.46 billion and 9.4% year-over-year growth. The company also raised its quarterly dividend to $2.20, or $8.80 annually.

Engineers Gate Manager LP lowered its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 17.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 17,014 shares of the company's stock after selling 3,698 shares during the quarter. Engineers Gate Manager LP's holdings in Cummins were worth $12,135,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Valmark Advisers Inc. raised its stake in shares of Cummins by 1.9% in the first quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock worth $472,000 after purchasing an additional 16 shares during the last quarter. Guardian Partners Inc. lifted its position in Cummins by 1.0% during the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after purchasing an additional 16 shares during the period. Nicolet Advisory Services LLC boosted its holdings in Cummins by 1.6% in the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after purchasing an additional 17 shares during the last quarter. Uhlmann Price Securities LLC grew its position in Cummins by 2.4% during the 1st quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after purchasing an additional 17 shares during the period. Finally, ICW Investment Advisors LLC grew its position in Cummins by 2.6% during the 4th quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after purchasing an additional 18 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on CMI. CICC Research initiated coverage on Cummins in a report on Sunday, August 23rd. They issued an "outperform" rating for the company. UBS Group dropped their target price on Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a report on Wednesday, August 5th. Citigroup lifted their price target on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Raymond James Financial boosted their price target on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday, May 26th. Finally, Truist Financial set a $894.00 price objective on Cummins in a research report on Wednesday, August 5th. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $764.54.

Insider Transactions at Cummins

In related news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, the vice president directly owned 4,479 shares in the company, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Cummins Price Performance

Cummins stock opened at $549.54 on Friday. The stock has a market capitalization of $75.65 billion, a P/E ratio of 28.08, a P/E/G ratio of 1.50 and a beta of 1.23. The company's fifty day moving average price is $621.91 and its 200 day moving average price is $625.61. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. Cummins Inc. has a 1 year low of $400.72 and a 1 year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business's revenue was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $6.43 earnings per share. As a group, equities research analysts anticipate that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were paid a $2.20 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a yield of 1.6%. This is a boost from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is 44.97%.

Cummins Company Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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