Cummins Inc. $CMI Position Reduced by Earnest Partners LLC

Key Points

• Earnest Partners LLC reduced its stake in Cummins Inc. by 2.6%, now owning approximately 295,779 shares valued at $92.7 million.
• Wall Street analysts have shown positive sentiment for Cummins, with several upgrades leading to an average price target of $370.83 and a mix of ratings including seven Buy and six Hold ratings.
• Cummins has declared an increased quarterly dividend of $2.00 per share, representing a 2.0% yield, effective September 4th.

Earnest Partners LLC trimmed its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 2.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 295,779 shares of the company's stock after selling 7,857 shares during the period. Earnest Partners LLC owned 0.21% of Cummins worth $92,709,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. GAMMA Investing LLC grew its position in shares of Cummins by 38,220.5% in the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock valued at $373,428,000 after purchasing an additional 1,188,276 shares during the last quarter. Raymond James Financial Inc. lifted its stake in Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after buying an additional 817,384 shares in the last quarter. Nuveen LLC acquired a new stake in Cummins during the 1st quarter valued at $109,120,000. Vanguard Group Inc. increased its position in 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 buying an additional 321,823 shares in the last quarter. Finally, Northern Trust Corp raised its holdings in shares of Cummins by 15.1% in 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 during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the sale, the vice president directly owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Robert Enright sold 1,860 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the transaction, the vice president owned 955 shares in the company, valued at $384,158.30. This trade represents a 66.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 26,039 shares of company stock valued at $10,385,075. 0.41% of the stock is owned by corporate insiders.

Cummins Trading Down 0.9%

Shares of CMI stock traded down $3.49 on Friday, reaching $398.43. 593,343 shares of the stock were exchanged, compared to its average volume of 886,784. 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 $54.90 billion, a P/E ratio of 18.73, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The firm has a 50 day moving average of $363.36 and a two-hundred day moving average of $335.29. 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 earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the previous year, the business earned $5.26 EPS. The company's revenue for the quarter was down 1.7% on a year-over-year basis. On average, research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 2.0%. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Analyst Ratings Changes

A number of research firms recently commented on CMI. Morgan Stanley increased their price objective on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday, May 6th. JPMorgan Chase & Co. raised their price target 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. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Finally, Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Seven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price 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.