Cummins Inc. $CMI Shares Acquired by Ethic Inc.

Key Points

• Ethic Inc. increased its stake in Cummins Inc. by 10.8% in the first quarter, owning a total of 11,615 shares worth approximately $3.66 million.
• Analysts have set new price targets for Cummins, with Barclays and Citigroup raising their targets to $387.00 and $425.00, respectively, reflecting a mostly positive outlook on the stock.
• Cummins recently declared a $2.00 quarterly dividend, up from the previous $1.82, indicating a solid annualized dividend yield of 2.0% for shareholders.

Ethic Inc. lifted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 10.8% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 11,615 shares of the company's stock after purchasing an additional 1,135 shares during the period. Ethic Inc.'s holdings in Cummins were worth $3,663,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Capital A Wealth Management LLC purchased a new position in Cummins in the fourth quarter valued at $32,000. Olde Wealth Management LLC purchased a new stake in Cummins during the 1st quarter worth about $30,000. Opal Wealth Advisors LLC purchased a new stake in Cummins during the 1st quarter worth about $37,000. Richardson Financial Services Inc. purchased a new stake in Cummins during the 1st quarter worth about $39,000. Finally, Costello Asset Management INC purchased a new stake in Cummins during the 1st quarter worth about $40,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages have issued reports on CMI. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Barclays boosted their target price on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Truist Financial boosted their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Finally, Robert W. Baird boosted their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $370.83.

Cummins Stock Performance

Shares of CMI stock traded down $2.1360 during trading hours on Thursday, reaching $394.2140. 726,358 shares of the company's stock were exchanged, compared to its average volume of 881,796. The company has a market cap of $54.32 billion, a P/E ratio of 18.53, a price-to-earnings-growth ratio of 1.96 and a beta of 1.02. The company's 50 day moving average is $351.98 and its two-hundred day moving average is $333.95. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $408.38. 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 (NYSE:CMI - Get Free Report) last released 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. The business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company's revenue was down 1.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.26 EPS. Equities research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently declared 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. The ex-dividend date is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 34.23%.

Insiders Place Their Bets

In other Cummins news, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the sale, the vice president owned 20,738 shares in the company, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction on 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 in the company, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 24,179 shares of company stock worth $9,636,871. 0.41% of the stock is 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.