Cummins Inc. $CMI Shares Sold by Hobbs Group Advisors LLC

Key Points

• Hobbs Group Advisors LLC reduced its holdings in Cummins Inc. by 24.8%, bringing its total shares to 2,107, worth approximately $690,000.
• Multiple analysts have upgraded Cummins' stock ratings, with Evercore ISI and others issuing "outperform" ratings and setting a consensus price target around $397.43.
• Cummins increased its quarterly dividend from $1.82 to $2.00, resulting in an annualized dividend yield of 1.9% and a payout ratio of 37.61%.

Hobbs Group Advisors LLC trimmed its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 24.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,107 shares of the company's stock after selling 694 shares during the quarter. Hobbs Group Advisors LLC's holdings in Cummins were worth $690,000 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. Opal Wealth Advisors LLC acquired a new position in Cummins in the 1st quarter valued at $37,000. Richardson Financial Services Inc. acquired a new position in Cummins in the 1st quarter valued at $39,000. Finally, Costello Asset Management INC acquired a new position in Cummins in the 1st quarter valued at $40,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Melius 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. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Truist Financial boosted their price objective on shares of Cummins from $380.00 to $434.00 and gave the company a "hold" rating in a research note on Wednesday. Finally, Evercore ISI restated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and an average target price of $397.43.

Cummins Price Performance

Shares of NYSE CMI opened at $413.28 on Friday. The firm has a market capitalization of $56.95 billion, a P/E ratio of 19.43, a PEG ratio of 2.00 and a beta of 1.04. Cummins Inc. has a one year low of $260.02 and a one year high of $440.51. The company's fifty day moving average is $407.21 and its two-hundred day moving average is $349.52. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

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 forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were given a $2.00 dividend. The ex-dividend date was Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is presently 37.61%.

Insiders Place Their Bets

In related news, CFO Mark Andrew Smith sold 8,000 shares of the business's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $439.30, for a total value of $3,514,400.00. Following the sale, the chief financial officer directly owned 31,582 shares in the company, valued at $13,873,972.60. The trade was a 20.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Robert Enright sold 1,860 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $402.26, for a total transaction of $748,203.60. Following the completion of the sale, the vice president owned 955 shares in the company, valued at $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 43,119 shares of company stock worth $17,674,285. 0.41% of the stock is owned by company insiders.

Cummins Company 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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.