Deutsche Bank AG Lowers Position in Cummins Inc. (NYSE:CMI)

Key Points

• Deutsche Bank AG reduced its stake in Cummins Inc. by 18.3%, owning 468,178 shares valued at approximately $146.75 million after selling 104,536 shares in Q1.
• Analysts have recently increased price targets for Cummins, with Citigroup raising theirs from $380 to $425, while maintaining an overall average price target of $370.83.
• Cummins announced a quarterly dividend increase to $2.00 per share, up from $1.82, which will be paid on September 4th and reflects a yield of 2.1%.

Deutsche Bank AG decreased its position in Cummins Inc. (NYSE:CMI - Free Report) by 18.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 468,178 shares of the company's stock after selling 104,536 shares during the period. Deutsche Bank AG owned about 0.34% of Cummins worth $146,746,000 as of its most recent SEC filing.

Several other institutional investors have also bought and sold shares of CMI. GAMMA Investing LLC lifted its position in shares of Cummins by 38,220.5% during the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock worth $373,428,000 after acquiring an additional 1,188,276 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after acquiring an additional 321,823 shares in the last quarter. Northern Trust Corp lifted its position in shares of Cummins by 15.1% during the fourth quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock worth $656,418,000 after acquiring an additional 246,807 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in shares of Cummins by 5,553.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock worth $46,731,000 after acquiring an additional 131,681 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Cummins during the fourth quarter worth $45,015,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Up 2.6%

NYSE CMI traded up $10.00 during trading on Tuesday, hitting $398.31. 774,355 shares of the company's stock traded hands, compared to its average volume of 888,135. The stock has a fifty day moving average of $341.28 and a two-hundred day moving average of $331.35. 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 Inc. has a 12-month low of $260.02 and a 12-month high of $399.09. The firm has a market cap of $54.88 billion, a P/E ratio of 18.73, a PEG ratio of 1.88 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly 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 during the quarter, compared to analyst estimates of $8.45 billion. During the same period in the prior year, the business posted $5.26 earnings per share. The company's revenue was down 1.7% on a year-over-year basis. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

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

Insider Transactions at Cummins

In other news, VP Jennifer Mary Bush sold 520 shares of the stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $388.13, for a total transaction of $201,827.60. Following the completion of the sale, the vice president directly owned 15,130 shares in the company, valued at approximately $5,872,406.90. This represents a 3.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John H. Stone acquired 1,000 shares of the stock in a transaction on Friday, May 16th. The stock was bought at an average price of $332.08 per share, with a total value of $332,080.00. Following the completion of the acquisition, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 0.41% of the company's stock.

Wall Street Analysts Forecast Growth

CMI has been the topic of several recent research reports. Citigroup increased their target price on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Evercore ISI decreased their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a report on Monday, May 19th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and upped their price target for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Morgan Stanley upped their price target 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, Barclays increased their target price on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have given a buy rating to the stock. According to data from MarketBeat, Cummins has a consensus rating of "Hold" and an average price target of $370.83.

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.