Cummins Inc. $CMI Shares Sold by Fifth Third Bancorp

Key Points

• Fifth Third Bancorp has reduced its stake in Cummins Inc. by 3.6% during Q2, now holding approximately $29.56 million worth of shares.
• Cummins recently increased its quarterly dividend to $2.00 per share, up from $1.82, reflecting a commitment to returning value to shareholders.
• Analysts are optimistic about Cummins, with firm upgrades and a consensus average price target of $393.57, indicating a strong market outlook.

Fifth Third Bancorp lessened its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 3.6% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 90,272 shares of the company's stock after selling 3,363 shares during the quarter. Fifth Third Bancorp owned approximately 0.07% of Cummins worth $29,564,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the company. Bank of Jackson Hole Trust boosted 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 purchasing an additional 33 shares in the last quarter. Scotia Capital Inc. raised its stake in shares of Cummins by 0.5% during the 1st 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. Van Hulzen Asset Management LLC lifted its position in shares of Cummins by 1.2% during the 1st quarter. Van Hulzen Asset Management LLC now owns 2,781 shares of the company's stock valued at $872,000 after buying an additional 34 shares in the last quarter. PKS Advisory Services LLC grew its stake in Cummins by 2.4% in the 1st quarter. PKS Advisory Services LLC now owns 1,497 shares of the company's stock valued at $469,000 after acquiring an additional 35 shares during the period. Finally, Forte Capital LLC ADV increased its holdings in Cummins by 0.4% in the 2nd quarter. Forte Capital LLC ADV now owns 9,371 shares of the company's stock worth $3,069,000 after acquiring an additional 36 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity at Cummins

In other Cummins news, VP Robert Enright sold 1,860 shares of the business's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president directly owned 955 shares in the company, valued at $384,158.30. The trade was a 66.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the sale, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. This represents a 19.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold 35,119 shares of company stock valued at $14,159,885 over the last ninety days. Corporate insiders own 0.41% of the company's stock.

Wall Street Analysts Forecast Growth

CMI has been the topic of several recent analyst reports. Citigroup increased their price objective on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a report on Tuesday. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research note on Wednesday, September 3rd. Barclays raised their target price on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Finally, Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research report 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and an average price target of $393.57.

Cummins Price Performance

NYSE:CMI opened at $418.24 on Thursday. Cummins Inc. has a one year low of $260.02 and a one year high of $432.50. The stock has a market cap of $57.63 billion, a PE ratio of 19.66, a P/E/G ratio of 2.05 and a beta of 1.02. 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 stock has a 50 day moving average price of $391.38 and a 200 day moving average price of $341.08.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results 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 company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the prior year, the business earned $5.26 EPS. The firm's quarterly revenue was down 1.7% on a year-over-year basis. Equities research analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal 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 given a dividend of $2.00 per share. The ex-dividend date was Friday, August 22nd. 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%. Cummins's dividend payout ratio (DPR) is 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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