Dimensional Fund Advisors LP Sells 76,891 Shares of Cummins Inc. $CMI

Key Points

• Dimensional Fund Advisors LP reduced its stake in Cummins Inc. by 4.8% during the first quarter, now holding 1,508,911 shares valued at approximately $472.9 million.
• Analysts have raised their price targets for Cummins, with Citigroup increasing theirs from $380 to $425, reflecting a consensus "hold" rating and a target price of $370.83.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, with a record date of August 22, leading to an annualized yield of 2.0%.

Dimensional Fund Advisors LP reduced its stake in Cummins Inc. (NYSE:CMI - Free Report) by 4.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,508,911 shares of the company's stock after selling 76,891 shares during the period. Dimensional Fund Advisors LP owned approximately 1.10% of Cummins worth $472,924,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Capital A Wealth Management LLC bought a new position in Cummins during the fourth quarter valued at approximately $32,000. Olde Wealth Management LLC bought a new position in Cummins during the first quarter valued at approximately $30,000. Opal Wealth Advisors LLC bought a new position in Cummins during the first quarter valued at approximately $37,000. Richardson Financial Services Inc. bought a new position in Cummins during the first quarter valued at approximately $39,000. Finally, Costello Asset Management INC bought a new position in Cummins during the first quarter valued at approximately $40,000. 83.46% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on CMI. Truist Financial increased their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Citigroup increased their price objective on Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. JPMorgan Chase & Co. increased their price objective on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Finally, Barclays increased their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Seven research 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.com, the company currently has an average rating of "Hold" and a consensus target price of $370.83.

Cummins Stock Up 0.1%

Shares of NYSE CMI traded up $0.23 during trading on Tuesday, reaching $402.18. The company had a trading volume of 618,196 shares, compared to its average volume of 885,159. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The business's 50-day moving average is $349.03 and its 200 day moving average is $333.04. The stock has a market cap of $55.41 billion, a PE ratio of 18.91, a P/E/G ratio of 1.95 and a beta of 1.02.

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

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's dividend payout ratio is currently 37.61%.

Insider Activity

In related news, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction that occurred on 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 sale, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The stock was 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. The trade was a 19.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 22,872 shares of company stock valued at $9,107,105 over the last 90 days. 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.