Davis R M Inc. Acquires 738 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• Davis R M Inc. raised its holdings in Cummins Inc. by 90.4% during the 1st quarter, owning 1,554 shares valued at approximately $487,000.
• Several large investors also increased their positions in Cummins, with FMR LLC and Fayez Sarofim & Co. raising their stakes by 5.7% and 72.3%, respectively, during the 4th quarter.
• Cummins recently declared an increased quarterly dividend of $2.00 per share, up from the previous $1.82, representing a yield of 2.2%.

Davis R M Inc. increased its position in Cummins Inc. (NYSE:CMI - Free Report) by 90.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,554 shares of the company's stock after acquiring an additional 738 shares during the quarter. Davis R M Inc.'s holdings in Cummins were worth $487,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of CMI. Meeder Asset Management Inc. boosted its position in shares of Cummins by 208.0% in the fourth quarter. Meeder Asset Management Inc. now owns 77 shares of the company's stock valued at $27,000 after acquiring an additional 52 shares during the period. Olde Wealth Management LLC bought a new stake in Cummins during the first quarter valued at approximately $30,000. Capital A Wealth Management LLC bought a new stake in Cummins during the fourth quarter valued at approximately $32,000. Opal Wealth Advisors LLC bought a new stake in Cummins during the first quarter valued at approximately $37,000. Finally, Richardson Financial Services Inc. bought a new stake in Cummins during the first quarter valued at approximately $39,000. 83.46% of the stock is currently owned by institutional investors.

Insider Transactions at Cummins

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

Cummins Stock Down 3.2%

Shares of NYSE:CMI traded down $11.76 during midday trading on Friday, reaching $355.86. The company's stock had a trading volume of 882,013 shares, compared to its average volume of 903,707. The firm has a 50 day moving average of $334.30 and a 200-day moving average of $331.07. The firm has a market capitalization of $49.02 billion, a P/E ratio of 17.70, a PEG ratio of 1.98 and a beta of 1.01. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.40. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $387.90.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Monday, May 5th. The company reported $5.96 earnings per share for the quarter, topping analysts' consensus estimates of $4.92 by $1.04. The firm had revenue of $8.17 billion for the quarter, compared to the consensus estimate of $8.22 billion. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The company's revenue was down 2.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.08 EPS. On average, research analysts anticipate 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. Shareholders of record on Friday, August 22nd will be paid a dividend of $2.00 per share. The ex-dividend date is Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 2.2%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is currently 39.80%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on CMI. Robert W. Baird boosted their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. JPMorgan Chase & Co. lifted their target price on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 6th. UBS Group downgraded shares of Cummins from a "buy" rating to a "sell" rating and decreased their target price for the stock from $400.00 to $240.00 in a research note on Monday, April 7th. Truist Financial decreased their target price on shares of Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a research note on Tuesday, April 8th. Finally, Barclays lifted their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. One analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $361.92.

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.