Cummins Inc. (NYSE:CMI) Shares Acquired by Assetmark Inc.

Key Points

• Assetmark Inc. increased its holdings in Cummins Inc. by 41.5%, owning 25,536 shares worth $8 million after acquiring 7,488 additional shares.
• Institutional investors own 83.46% of Cummins Inc.'s stock, with notable stakes being increased significantly by firms like GAMMA Investing LLC and Balyasny Asset Management.
• Cummins declared a quarterly dividend of $2.00 per share, up from $1.82, representing an annualized yield of 2.17% and reflecting the company's strong financial position.

Assetmark Inc. raised its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 41.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 25,536 shares of the company's stock after buying an additional 7,488 shares during the period. Assetmark Inc.'s holdings in Cummins were worth $8,004,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in CMI. Meeder Asset Management Inc. raised its holdings in Cummins by 208.0% during the 4th quarter. Meeder Asset Management Inc. now owns 77 shares of the company's stock valued at $27,000 after buying an additional 52 shares during the last quarter. Capital A Wealth Management LLC bought a new position in Cummins in the fourth quarter worth about $32,000. Olde Wealth Management LLC bought a new position in Cummins in the first quarter worth about $30,000. Opal Wealth Advisors LLC bought a new position in Cummins in the first quarter worth about $37,000. Finally, Richardson Financial Services Inc. bought a new position in Cummins in the first quarter worth about $39,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Price Performance

Cummins stock traded up $1.60 during midday trading on Monday, reaching $371.12. 805,884 shares of the stock traded hands, compared to its average volume of 882,899. The stock has a market cap of $51.13 billion, a P/E ratio of 18.46, a PEG ratio of 2.05 and a beta of 1.03. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $387.90. The stock's fifty day moving average is $331.07 and its 200-day moving average is $330.80. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.40.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Monday, May 5th. The company reported $5.96 earnings per share for the quarter, topping the consensus estimate of $4.92 by $1.04. The firm had revenue of $8.17 billion for the quarter, compared to the consensus estimate of $8.22 billion. Cummins had a return on equity of 26.88% and a net margin of 8.20%. The company's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.08 earnings per share. As a group, equities research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be issued a $2.00 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 2.16%. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 36.22%.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. JPMorgan Chase & Co. boosted their target price on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Citigroup reaffirmed a "buy" rating and issued a $360.00 price target (up previously from $350.00) on shares of Cummins in a research report on Tuesday, June 24th. Barclays increased their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Evercore ISI cut their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a report on Monday, May 19th. Finally, Truist Financial cut their price target on shares of Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a report on Tuesday, April 8th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $361.92.

Insiders Place Their Bets

In related news, Director John H. Stone bought 1,000 shares of the stock in a transaction on Friday, May 16th. The stock was bought at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the acquisition, the director directly owned 2,441 shares in the company, valued at approximately $810,607.28. This represents a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.41% of the stock is currently owned by corporate 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.