Cummins Inc. $CMI Stock Sold by Verdence Capital Advisors LLC

Key Points

• Verdence Capital Advisors cut its Cummins stake by 82.7% in the third quarter, selling 11,551 shares and retaining 2,416 shares worth approximately $1.25 million. Institutional investors overall own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 fell short of the $7.21 consensus forecast.
• The company declared a quarterly dividend of $2.20, equivalent to $8.80 annually and a 1.7% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $694.24, despite several recent target reductions.

Verdence Capital Advisors LLC lessened its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 82.7% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,416 shares of the company's stock after selling 11,551 shares during the quarter. Verdence Capital Advisors LLC's holdings in Cummins were worth $1,248,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the stock. BlackRock Inc. acquired a new stake in Cummins during the 2nd quarter worth $8,204,241,000. Bank of America Corp DE purchased a new stake in Cummins in the second quarter valued at $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in Cummins in the second quarter valued at $973,198,000. Robeco Institutional Asset Management B.V. boosted its stake in Cummins by 6.4% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock valued at $530,405,000 after acquiring an additional 62,107 shares in the last quarter. Finally, Legal & General Group Plc acquired a new position in Cummins in the second quarter valued at $666,635,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Activity at Cummins

In other news, VP Earl Newsome sold 698 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the sale, the vice president directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.30% of the stock is owned by corporate insiders.

Cummins Trading Down 0.2%

Shares of CMI stock opened at $529.59 on Thursday. The company has a market capitalization of $72.90 billion, a P/E ratio of 27.06, a price-to-earnings-growth ratio of 1.37 and a beta of 1.24. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The business's 50 day moving average is $540.40 and its two-hundred day moving average is $602.50. Cummins Inc. has a twelve month low of $418.77 and a twelve month high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter last year, the company earned $6.43 EPS. Cummins's revenue for the quarter was up 9.4% compared to the same quarter last year. Equities analysts forecast that Cummins Inc. will post 29.98 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a $2.20 dividend. The ex-dividend date is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a yield of 1.7%. Cummins's dividend payout ratio (DPR) is presently 44.97%.

Analysts Set New Price Targets

Several equities analysts have issued reports on the company. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Citigroup reduced their target price on Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a report on Monday, October 12th. Wall Street Zen raised Cummins from a "hold" rating to a "buy" rating in a report on Sunday. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Finally, JPMorgan Chase & Co. dropped their price target on Cummins from $690.00 to $600.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 23rd. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and an average price target of $694.24.

Cummins Company Profile

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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