Cummins Inc. $CMI Shares Sold by Hotchkis & Wiley Capital Management LLC

Key Points

• Hotchkis & Wiley Capital Management LLC reduced its stake in Cummins Inc. by 0.4%, now holding approximately 1,323,314 shares valued at $414.78 million, which represents 1.4% of their total holdings.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00 per share, marking a 2.0% yield based on an annualized basis of $8.00.
• Equity analysts have generally regarded Cummins positively, with recent upgrades leading to price target increases, including Citigroup raising its target from $380 to $425 and various firms maintaining strong "buy" and "overweight" ratings.

Hotchkis & Wiley Capital Management LLC decreased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 0.4% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,323,314 shares of the company's stock after selling 4,766 shares during the quarter. Cummins comprises about 1.4% of Hotchkis & Wiley Capital Management LLC's investment portfolio, making the stock its 24th biggest position. Hotchkis & Wiley Capital Management LLC owned about 0.96% of Cummins worth $414,780,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Fox Run Management L.L.C. acquired a new stake in shares of Cummins during the first quarter worth $2,749,000. Alpha Cubed Investments LLC purchased a new position in shares of Cummins in the 1st quarter worth $440,000. Assenagon Asset Management S.A. raised its position in shares of Cummins by 8.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock worth $4,283,000 after buying an additional 1,114 shares during the period. Invesco Ltd. raised its position in shares of Cummins by 11.6% in the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after buying an additional 126,362 shares during the period. Finally, Artemis Investment Management LLP raised its position in shares of Cummins by 19.1% in the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock worth $2,428,000 after buying an additional 1,241 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

CMI stock traded up $3.04 during midday trading on Wednesday, reaching $401.50. The company had a trading volume of 532,984 shares, compared to its average volume of 879,335. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The stock has a 50 day moving average price of $358.19 and a 200 day moving average price of $334.66. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The firm has a market capitalization of $55.32 billion, a PE ratio of 18.88, a P/E/G ratio of 1.91 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $8.45 billion. During the same period in the previous year, the firm posted $5.26 earnings per share. Cummins's quarterly revenue was down 1.7% compared to the same quarter last year. Analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be paid a $2.00 dividend. The ex-dividend date is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. Cummins's payout ratio is presently 37.61%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on CMI shares. Barclays increased their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Wells Fargo & Company raised Cummins to an "overweight" rating in a research report on Monday, August 11th. JPMorgan Chase & Co. increased their target price on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 6th. Finally, Truist Financial increased their target price on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research report on Thursday, August 7th. Seven 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 company's stock. According to MarketBeat.com, Cummins currently has an average rating of "Hold" and a consensus price target of $370.83.

Insider Buying and Selling at Cummins

In other news, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the transaction, the vice president directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the business'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 value of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 26,039 shares of company stock valued at $10,385,075. 0.41% of the stock is currently owned by insiders.

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.