Cummins Inc. $CMI Shares Sold by Merit Financial Group LLC

Key Points

• Merit Financial Group LLC reduced its holdings in Cummins Inc. by 7.2%, selling 1,336 shares during the second quarter, bringing their total shares owned to 17,184, valued at $5,628,000.
• Cummins recently announced a quarterly dividend increase from $1.82 to $2.00 per share, resulting in a 1.8% dividend yield.
• Analysts have generally rated Cummins shares positively, with multiple upgrades and a consensus rating of "Moderate Buy", along with an average price target increase to $393.57.

Merit Financial Group LLC lowered its position in Cummins Inc. (NYSE:CMI - Free Report) by 7.2% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 17,184 shares of the company's stock after selling 1,336 shares during the quarter. Merit Financial Group LLC's holdings in Cummins were worth $5,628,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of CMI. Orca Wealth Management LLC lifted its stake in shares of Cummins by 0.6% in the second quarter. Orca Wealth Management LLC now owns 4,609 shares of the company's stock worth $1,509,000 after acquiring an additional 28 shares in the last quarter. Simplicity Wealth LLC increased its holdings in Cummins by 120.9% during the 2nd quarter. Simplicity Wealth LLC now owns 6,792 shares of the company's stock worth $2,225,000 after purchasing an additional 3,717 shares during the last quarter. Wealthcare Advisory Partners LLC raised its position in shares of Cummins by 4.5% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 3,978 shares of the company's stock valued at $1,303,000 after purchasing an additional 171 shares in the last quarter. Quent Capital LLC boosted its stake in shares of Cummins by 15.8% during the 2nd quarter. Quent Capital LLC now owns 733 shares of the company's stock valued at $240,000 after buying an additional 100 shares during the last quarter. Finally, QRG Capital Management Inc. grew its position in shares of Cummins by 52.2% during the second quarter. QRG Capital Management Inc. now owns 47,377 shares of the company's stock worth $15,516,000 after buying an additional 16,257 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Stock Performance

Shares of CMI stock opened at $439.66 on Tuesday. The company has a market cap of $60.58 billion, a P/E ratio of 20.67, a PEG ratio of 2.09 and a beta of 1.04. The business has a 50 day moving average of $402.11 and a two-hundred day moving average of $346.92. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $440.51. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping 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 business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the prior year, the firm earned $5.26 EPS. The business's quarterly revenue was down 1.7% on a year-over-year basis. As a group, analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.8%. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. Cummins's dividend payout ratio is presently 37.61%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on CMI shares. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Truist Financial upped their target price on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Melius Research 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 report on Wednesday, September 3rd. Evercore ISI reissued an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Finally, Barclays increased their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Ten equities research 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's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $393.57.

Insider Buying and Selling at Cummins

In related news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president owned 7,693 shares of the company's stock, valued at $2,994,038.67. This trade represents a 38.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the business's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 35,119 shares of company stock valued at $14,159,885. Corporate insiders own 0.41% of the company's stock.

About Cummins

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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