Raymond James Financial Inc. Acquires 817,384 Shares of Cummins Inc. $CMI

Key Points

• Raymond James Financial Inc. significantly increased its stake in Cummins Inc. by 152.3%, owning over 1.35 million shares valued at approximately $424 million.
• Cummins announced a quarterly dividend increase to $2.00 per share, reflecting an annualized dividend of $8.00 and a yield of 2.0%.
• The company beat analysts' earnings expectations for the last quarter, reporting $6.43 earnings per share compared to the consensus estimate of $5.21.

Raymond James Financial Inc. grew its position in Cummins Inc. (NYSE:CMI - Free Report) by 152.3% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 1,354,052 shares of the company's stock after buying an additional 817,384 shares during the period. Raymond James Financial Inc. owned 0.98% of Cummins worth $424,414,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in the company. Fayez Sarofim & Co raised its holdings in Cummins by 72.3% during the 4th quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock worth $2,857,000 after purchasing an additional 3,440 shares during the last quarter. Fox Run Management L.L.C. acquired a new stake in shares of Cummins during the 1st quarter worth approximately $2,749,000. Alpha Cubed Investments LLC bought a new stake in shares of Cummins during the first quarter worth approximately $440,000. Assenagon Asset Management S.A. lifted its holdings in Cummins by 8.9% in the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after buying an additional 1,114 shares during the period. Finally, Invesco Ltd. boosted its stake in Cummins by 11.6% in the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after acquiring an additional 126,362 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Down 1.5%

CMI stock traded down $6.0350 during mid-day trading on Wednesday, hitting $396.1750. 687,292 shares of the company were exchanged, compared to its average volume of 883,163. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38. The firm's 50 day simple moving average is $350.54 and its 200 day simple moving average is $333.52. The firm has a market cap of $54.59 billion, a P/E ratio of 18.63, a P/E/G ratio of 1.96 and a beta of 1.02.

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, beating the consensus estimate of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the prior year, the company earned $5.26 earnings per share. The business's quarterly revenue was down 1.7% compared to the same quarter last year. On average, sell-side analysts predict 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. Shareholders of record on Friday, August 22nd will be paid 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 2.0%. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is 34.23%.

Wall Street Analyst Weigh In

CMI has been the subject of several recent research reports. Citigroup upped their target price on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Truist Financial lifted their price objective on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday, August 7th. Wells Fargo & Company raised Cummins to an "overweight" rating in a research note on Monday, August 11th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and increased their price target for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, 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 note on Tuesday, May 6th. Seven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $370.83.

Insider Buying and Selling

In other news, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer owned 31,582 shares of the company's stock, valued at approximately $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 24,179 shares of company stock valued at $9,636,871. 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.