Cummins Inc. $CMI Shares Sold by Eldred Rock Partners LLC

Key Points

• Eldred Rock Partners LLC has reduced its stake in Cummins Inc. by 5.1%, now owning 34,631 shares, valued at approximately $11.34 million.
• Cummins recently increased its quarterly dividend to $2.00 per share, up from $1.82, yielding 1.9% annually as of the last payment date.
• In recent earnings, Cummins reported $6.43 EPS for the quarter, exceeding expectations and with a revenue of $8.64 billion, though down 1.7% year-over-year.

Eldred Rock Partners LLC decreased its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 5.1% in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 34,631 shares of the company's stock after selling 1,849 shares during the quarter. Cummins accounts for approximately 3.4% of Eldred Rock Partners LLC's holdings, making the stock its 14th biggest position. Eldred Rock Partners LLC's holdings in Cummins were worth $11,342,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Fox Run Management L.L.C. purchased a new position in Cummins in the 1st quarter worth about $2,749,000. Alpha Cubed Investments LLC purchased a new position in shares of Cummins in the first quarter valued at $440,000. Assenagon Asset Management S.A. grew its holdings in shares of Cummins by 8.9% in the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after purchasing an additional 1,114 shares in the last quarter. Invesco Ltd. lifted its position in Cummins by 11.6% in the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after buying an additional 126,362 shares during the last quarter. Finally, Artemis Investment Management LLP lifted its position in Cummins by 19.1% in the first 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 last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Down 0.7%

NYSE:CMI traded down $2.80 during trading hours on Friday, hitting $423.59. The company had a trading volume of 1,594,141 shares, compared to its average volume of 734,338. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The company has a 50-day moving average of $386.60 and a 200 day moving average of $339.41. The company has a market cap of $58.36 billion, a P/E ratio of 19.91, a P/E/G ratio of 2.05 and a beta of 1.02. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $428.96.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the prior year, the company posted $5.26 EPS. The company's quarterly revenue was down 1.7% on a year-over-year basis. Sell-side analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were given a $2.00 dividend. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is 37.61%.

Analyst Ratings Changes

Several equities analysts have recently commented on CMI shares. Evercore ISI restated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Melius upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a research note on Monday, August 11th. Finally, Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Nine equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $389.29.

Insiders Place Their Bets

In other news, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. This represents a 17.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total value of $529,766.31. Following the sale, the director directly owned 5,227 shares of the company's stock, valued at $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 35,119 shares of company stock worth $14,159,885. 0.41% of the stock is currently owned by company insiders.

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.