Cummins Inc. (NYSE:CMI) Shares Sold by Watchman Group Inc.

Key Points

• Watchman Group Inc. reduced its holdings in Cummins Inc. by 11.9% in the first quarter, now owning 11,773 shares worth approximately $3.69 million.
• Cummins announced a quarterly dividend of $2.00 per share, an increase from the previous $1.82, reflecting a 2.0% dividend yield.
• JPMorgan Chase & Co. raised its target price for Cummins to $320.00 with a "neutral" rating, amid various adjustments from other brokerages on the stock's price outlook.

Watchman Group Inc. decreased its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 11.9% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 11,773 shares of the company's stock after selling 1,584 shares during the quarter. Watchman Group Inc.'s holdings in Cummins were worth $3,690,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Horizon Investments LLC lifted its holdings in shares of Cummins by 5.2% during the first quarter. Horizon Investments LLC now owns 1,975 shares of the company's stock worth $619,000 after purchasing an additional 98 shares during the period. Fox Run Management L.L.C. purchased a new position in shares of Cummins during the first quarter worth $2,749,000. Hamlin Capital Management LLC raised its holdings in shares of Cummins by 1.8% during the first quarter. Hamlin Capital Management LLC now owns 529,613 shares of the company's stock worth $166,002,000 after purchasing an additional 9,425 shares during the last quarter. Kovitz Investment Group Partners LLC raised its holdings in shares of Cummins by 383.7% during the first quarter. Kovitz Investment Group Partners LLC now owns 42,457 shares of the company's stock worth $13,308,000 after purchasing an additional 33,679 shares during the last quarter. Finally, Lord Abbett & CO. LLC raised its holdings in shares of Cummins by 24.6% during the first quarter. Lord Abbett & CO. LLC now owns 335,392 shares of the company's stock worth $105,125,000 after purchasing an additional 66,110 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity

In other news, VP Jennifer Mary Bush sold 520 shares of Cummins stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $388.13, for a total value of $201,827.60. Following the sale, the vice president owned 15,130 shares in the company, valued at $5,872,406.90. This trade represents a 3.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Mark Andrew Smith sold 6,500 shares of Cummins stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the completion of the sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 17,870 shares of company stock worth $7,091,899 over the last 90 days. 0.41% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on CMI. JPMorgan Chase & Co. raised their target price on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a report on Tuesday, May 6th. Evercore ISI reduced their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a report on Monday, May 19th. Barclays raised their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Morgan Stanley raised their target price on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a report on Tuesday, May 6th. Finally, Truist Financial raised their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat.com, Cummins presently has a consensus rating of "Hold" and a consensus price target of $370.83.

Cummins Stock Down 0.4%

CMI stock opened at $405.25 on Friday. The firm has a market cap of $55.84 billion, a PE ratio of 19.05, a P/E/G ratio of 1.98 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The firm's fifty day moving average is $346.07 and its 200 day moving average is $332.72. Cummins Inc. has a one year low of $260.02 and a one year high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) 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 business had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the business earned $5.26 earnings per share. The company's revenue for the quarter was down 1.7% compared to the same quarter last year. On average, research analysts forecast that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a $2.00 dividend. 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. The ex-dividend date is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is 34.23%.

Cummins Company 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.

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