Korea Investment CORP Sells 1,722 Shares of Cummins Inc. $CMI

Key Points

• Korea Investment CORP reduced its stake in Cummins Inc. by 1.7%, selling 1,722 shares and retaining 97,372 shares worth approximately $30.52 million.
• Several hedge funds increased their positions in Cummins, with Fayez Sarofim & Co growing by 72.3% and others making new purchases worth millions.
• Cummins recently increased its quarterly dividend to $2.00 per share, reflecting a positive change from the previous dividend of $1.82, and a yield of 2.0%.

Korea Investment CORP lowered its position in Cummins Inc. (NYSE:CMI - Free Report) by 1.7% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 97,372 shares of the company's stock after selling 1,722 shares during the period. Korea Investment CORP owned 0.07% of Cummins worth $30,520,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Capital A Wealth Management LLC acquired a new position in Cummins in the fourth quarter worth approximately $32,000. Olde Wealth Management LLC acquired a new position in Cummins during the first quarter valued at approximately $30,000. Opal Wealth Advisors LLC acquired a new position in Cummins during the first quarter valued at approximately $37,000. Richardson Financial Services Inc. acquired a new position in Cummins during the first quarter valued at approximately $39,000. Finally, Costello Asset Management INC acquired a new position in Cummins during the first quarter valued at approximately $40,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have commented on CMI. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a report on Monday, August 11th. Barclays increased their price target on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Morgan Stanley increased their price target on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. JPMorgan Chase & Co. increased their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Finally, Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $370.83.

Insiders Place Their Bets

In related news, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $12,790,710. This trade represents a 17.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction 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 completion of the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 24,179 shares of company stock valued at $9,636,871 in the last 90 days. 0.41% of the stock is currently owned by corporate insiders.

Cummins Stock Performance

Shares of Cummins stock traded up $7.8750 during midday trading on Friday, hitting $402.0750. The company had a trading volume of 775,198 shares, compared to its average volume of 935,740. The business's 50 day simple moving average is $355.04 and its two-hundred day simple moving average is $334.53. The stock has a market cap of $55.40 billion, a PE ratio of 18.90, a P/E/G ratio of 1.90 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38.

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, topping 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%. Cummins's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the company posted $5.26 earnings per share. As a group, equities analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. The ex-dividend date is 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 2.0%. Cummins's dividend payout ratio is 34.23%.

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.