DAVENPORT & Co LLC Buys 907 Shares of Cummins Inc. $CMI

Key Points

• DAVENPORT & Co LLC increased its stake in Cummins Inc. by 2.4%, owning 38,437 shares valued at approximately $12.6 million after purchasing an additional 907 shares in the second quarter.
• Several analysts have upgraded Cummins' rating, with a consensus rating of "Moderate Buy" and an average price target of $393.57, indicating positive growth expectations for the stock.
• Cummins recently announced an increase in its quarterly dividend to $2.00 per share, representing a dividend yield of 1.8% and a yearly payout of $8.00.

DAVENPORT & Co LLC boosted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 2.4% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 38,437 shares of the company's stock after purchasing an additional 907 shares during the quarter. DAVENPORT & Co LLC's holdings in Cummins were worth $12,588,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of CMI. Olde Wealth Management LLC purchased a new position in shares of Cummins in the 1st quarter worth approximately $30,000. Accredited Wealth Management LLC purchased a new stake in Cummins during the first quarter valued at approximately $31,000. Opal Wealth Advisors LLC acquired a new stake in Cummins in the first quarter valued at approximately $37,000. Richardson Financial Services Inc. purchased a new position in Cummins in the first quarter worth $39,000. Finally, Costello Asset Management INC acquired a new position in shares of Cummins during the first quarter worth $40,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. Barclays upped their price objective on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Robert W. Baird lifted their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $393.57.

Insider Activity

In related news, 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 transaction of $2,015,205.76. Following the completion of the transaction, the vice president directly owned 20,738 shares in the company, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value 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. The trade was a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 35,119 shares of company stock valued at $14,159,885 over the last 90 days. Company insiders own 0.41% of the company's stock.

Cummins Stock Up 1.6%

CMI stock opened at $439.66 on Tuesday. The company has a market capitalization of $60.58 billion, a P/E ratio of 20.67, a price-to-earnings-growth ratio of 2.09 and a beta of 1.04. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $440.51. The firm's fifty day simple moving average is $402.11 and its 200-day simple moving average is $346.92. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (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 during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter last year, the company posted $5.26 earnings per share. The firm's revenue was down 1.7% compared to the same quarter last year. As a group, equities research analysts forecast 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 was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. The ex-dividend date was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.8%. Cummins's dividend payout ratio (DPR) is currently 37.61%.

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.

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