Invesco Ltd. Boosts Holdings in Cummins Inc. (NYSE:CMI)

Key Points

• Invesco Ltd. increased its stake in Cummins Inc. by 11.6%, owning 1,215,956 shares valued at approximately $381 million as of the latest SEC filing.
• Cummins has recently increased its quarterly dividend from $1.82 to $2.00, translating to an annual yield of 2.1% for shareholders.
• Research analysts have a consensus rating of "Hold" for Cummins stock, with an average target price of $370.83.

Invesco Ltd. boosted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 11.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,215,956 shares of the company's stock after purchasing an additional 126,362 shares during the period. Invesco Ltd. owned approximately 0.88% of Cummins worth $381,129,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in CMI. Fayez Sarofim & Co grew its position in shares of Cummins by 72.3% during the 4th quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock valued at $2,857,000 after acquiring an additional 3,440 shares during the period. Alpha Cubed Investments LLC bought a new position in Cummins in the 1st quarter worth $440,000. Assenagon Asset Management S.A. boosted its holdings in Cummins by 8.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock worth $4,283,000 after buying an additional 1,114 shares during the period. Artemis Investment Management LLP boosted its holdings in Cummins by 19.1% in the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock worth $2,428,000 after buying an additional 1,241 shares during the period. Finally, Y Intercept Hong Kong Ltd boosted its holdings in Cummins by 186.5% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 20,816 shares of the company's stock worth $6,525,000 after buying an additional 13,551 shares during the period. Institutional investors own 83.46% of the company's stock.

Insider Buying and Selling

In related news, CFO Mark Andrew Smith sold 6,500 shares of the company's stock in a transaction that occurred on 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 sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $12,790,710. This represents a 17.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Jennifer Mary Bush sold 520 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the sale, the vice president directly owned 15,130 shares in the company, valued at approximately $5,872,406.90. The trade was a 3.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 17,870 shares of company stock valued at $7,091,899 in the last ninety days. Company insiders own 0.41% of the company's stock.

Cummins Trading Down 1.7%

NYSE:CMI traded down $6.80 on Friday, hitting $398.00. The stock had a trading volume of 355,696 shares, compared to its average volume of 886,925. 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 stock has a market cap of $54.84 billion, a price-to-earnings ratio of 18.70, a PEG ratio of 1.98 and a beta of 1.02. The company has a fifty day moving average price of $346.07 and a two-hundred day moving average price of $332.72. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last issued 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. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same period in the prior year, the business posted $5.26 EPS. The business's revenue for the quarter was down 1.7% compared to the same quarter last year. Equities research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 34.23%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on CMI shares. Barclays upped 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. Evercore ISI dropped their price objective 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. Truist Financial increased their price target on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Morgan Stanley increased their price objective on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. Finally, Robert W. Baird increased their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, Cummins has an average rating of "Hold" and an average price target of $370.83.

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.