Commonwealth Equity Services LLC Sells 4,540 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• Commonwealth Equity Services LLC reduced its holdings in Cummins Inc. by 6.5%, owning 65,027 shares valued at $20.38 million at the end of the first quarter.
• Cummins declared a quarterly dividend of $2.00, increasing from the previous $1.82, representing an annualized yield of 2.1%.
• The company's share price is currently up 2.3% and has a market capitalization of $52.62 billion, with a P/E ratio of 17.96.

Commonwealth Equity Services LLC trimmed its stake in Cummins Inc. (NYSE:CMI - Free Report) by 6.5% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 65,027 shares of the company's stock after selling 4,540 shares during the quarter. Commonwealth Equity Services LLC's holdings in Cummins were worth $20,382,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Olde Wealth Management LLC acquired a new position in shares of Cummins during the first quarter worth about $30,000. Capital A Wealth Management LLC bought a new position in Cummins during the 4th quarter valued at $32,000. Opal Wealth Advisors LLC acquired a new position in Cummins in the first quarter worth about $37,000. Richardson Financial Services Inc. bought a new stake in shares of Cummins in the 1st quarter valued at approximately $39,000. Finally, Park Square Financial Group LLC acquired a new stake in shares of Cummins during the fourth quarter worth $45,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. JPMorgan Chase & Co. boosted their price objective on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research report on Tuesday, May 6th. Citigroup raised their target price on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and raised their target price for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Morgan Stanley boosted their price objective on Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a report on Tuesday, May 6th. Finally, Barclays increased 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. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $370.83.

Cummins Stock Up 0.8%

CMI stock traded up $2.96 during trading hours on Friday, hitting $387.57. The company's stock had a trading volume of 932,746 shares, compared to its average volume of 889,216. The company has a market capitalization of $53.39 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 2.12 and a beta of 1.02. The stock has a 50 day moving average price of $338.51 and a two-hundred day moving average price of $331.56. The company has a quick ratio of 0.81, 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 $391.56.

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

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 2.1%. This is an increase from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's payout ratio is presently 34.23%.

Insider Transactions at Cummins

In related news, Director John H. Stone acquired 1,000 shares of the company's stock in a transaction dated Friday, May 16th. The shares were bought at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the acquisition, the director owned 2,441 shares in the company, valued at $810,607.28. This trade represents a 69.40% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.41% of the company's stock.

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.