Empowered Funds LLC Decreases Stock Position in Cummins Inc. $CMI

Key Points

• Empowered Funds LLC reduced its stake in Cummins Inc. by 16.6%, selling 4,213 shares, leaving them with 21,123 shares valued at approximately $6.62 million.
• Other institutional investors significantly increased their holdings in Cummins, with GAMMA Investing LLC raising its stake by over 38,000%, now owning 1.19 million shares valued at $373 million.
• Cummins increased its quarterly dividend to $2.00 per share, resulting in an annualized yield of 2.0%, up from the previous $1.82 per share.

Empowered Funds LLC trimmed its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 16.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 21,123 shares of the company's stock after selling 4,213 shares during the period. Empowered Funds LLC's holdings in Cummins were worth $6,621,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in CMI. GAMMA Investing LLC lifted its stake 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 worth $373,428,000 after acquiring an additional 1,188,276 shares in the last quarter. Raymond James Financial Inc. increased its holdings in Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after purchasing an additional 817,384 shares during the last quarter. AQR Capital Management LLC raised its position in shares of Cummins by 70.9% in the 1st quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock valued at $314,942,000 after purchasing an additional 424,294 shares in the last quarter. Nuveen LLC purchased a new position in shares of Cummins during the 1st quarter valued at approximately $109,120,000. Finally, Vanguard Group Inc. grew 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 buying an additional 321,823 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director Karen H. Quintos sold 1,307 shares of the company's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the transaction, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the sale, the vice president directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock worth $10,385,075 over the last 90 days. Insiders own 0.41% of the company's stock.

Cummins Trading Up 2.6%

NYSE CMI opened at $404.89 on Thursday. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. Cummins Inc. has a one year low of $260.02 and a one year high of $408.38. The company has a 50-day simple moving average of $375.00 and a 200-day simple moving average of $336.77. The firm has a market capitalization of $55.79 billion, a PE ratio of 19.04, a price-to-earnings-growth ratio of 1.91 and a beta of 1.02.

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 net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter last year, the company posted $5.26 earnings per share. Cummins's revenue was down 1.7% on a year-over-year basis. On average, equities analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were given a dividend of $2.00 per share. The ex-dividend date was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is presently 37.61%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on CMI. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, September 3rd. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Truist Financial lifted their price target on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday, August 7th. Finally, Wells Fargo & Company raised Cummins to an "overweight" rating in a report on Monday, August 11th. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Cummins has an average rating of "Moderate Buy" and an average target price of $389.29.

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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