Gulf International Bank UK Ltd Has $2.53 Million Stake in Cummins Inc. (NYSE:CMI)

Key Points

• Gulf International Bank UK Ltd reduced its stake in Cummins Inc. by 20.2%, selling 2,040 shares and leaving it with 8,058 shares valued at approximately $2.53 million.
• Insider transactions show that Cummins executives, including VP Jennifer Mary Bush and CFO Mark Andrew Smith, sold significant amounts of stock recently, indicating a 3.32% and 17.07% decrease in their respective holdings.
• Cummins announced a quarterly dividend increase from $1.82 to $2.00 per share, marking a 2.0% yield based on an annualized payout of $8.00.

Gulf International Bank UK Ltd lowered its stake in Cummins Inc. (NYSE:CMI - Free Report) by 20.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 8,058 shares of the company's stock after selling 2,040 shares during the period. Gulf International Bank UK Ltd's holdings in Cummins were worth $2,525,000 as of its most recent filing with the SEC.

Several other institutional investors also recently modified their holdings of CMI. Olde Wealth Management LLC bought a new position in shares of Cummins in the first quarter valued at $30,000. Capital A Wealth Management LLC purchased a new position in Cummins during the 4th quarter worth approximately $32,000. Opal Wealth Advisors LLC purchased a new position in Cummins during the 1st quarter worth approximately $37,000. Richardson Financial Services Inc. purchased a new position in Cummins during the 1st quarter worth approximately $39,000. Finally, Costello Asset Management INC purchased a new position in Cummins during the 1st quarter worth approximately $40,000. Institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

CMI has been the topic of several research analyst reports. Barclays lifted their price objective on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 6th. Robert W. Baird lifted their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and seven have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $370.83.

Cummins Stock Down 1.6%

Shares of Cummins stock traded down $6.35 on Friday, hitting $398.45. 701,253 shares of the company traded hands, compared to its average volume of 1,050,250. The company has a 50-day moving average price of $347.51 and a 200 day moving average price of $332.91. 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 Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The company has a market cap of $54.90 billion, a PE ratio of 18.73, a PEG ratio of 1.95 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The firm had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. During the same period in the prior year, the company posted $5.26 earnings per share. Sell-side analysts predict that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

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

Insider Buying and Selling at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the sale, the vice president directly owned 20,738 shares in the company, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Jennifer Mary Bush sold 520 shares of the company's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the completion of the sale, the vice president owned 15,130 shares of the company's stock, valued at $5,872,406.90. This represents a 3.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 22,872 shares of company stock valued at $9,107,105. Company insiders own 0.41% of the company's stock.

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.