Epoch Investment Partners Inc. Reduces Position in Cummins Inc. $CMI

Key Points

• Epoch Investment Partners cut its Cummins stake by 71.7% in the first quarter, selling 112,630 shares and ending with 44,416 shares worth about $23.9 million.
• Cummins reported better-than-expected quarterly results, with EPS of $6.15 versus estimates of $5.63 and revenue of $8.40 billion, up 2.7% year over year.
• The company raised its quarterly dividend to $2.20 per share from $2.00, while analysts remain generally positive with a Moderate Buy consensus and an average price target of $740.07.

Epoch Investment Partners Inc. trimmed its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 71.7% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 44,416 shares of the company's stock after selling 112,630 shares during the period. Epoch Investment Partners Inc.'s holdings in Cummins were worth $23,897,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Thompson Investment Management Inc. purchased a new stake in Cummins during the 4th quarter valued at about $26,000. Activest Wealth Management raised its holdings in Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after acquiring an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC lifted its stake in Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after purchasing an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC purchased a new position in Cummins in the 4th quarter worth approximately $27,000. Finally, Key Financial Inc boosted its holdings in shares of Cummins by 62.5% during the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after purchasing an additional 20 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Down 0.2%

Shares of NYSE CMI opened at $663.96 on Friday. The company has a market capitalization of $91.62 billion, a P/E ratio of 34.46, a P/E/G ratio of 1.62 and a beta of 1.22. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The company has a 50 day simple moving average of $672.19 and a 200-day simple moving average of $619.28. Cummins Inc. has a 1 year low of $354.68 and a 1 year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm's quarterly revenue was up 2.7% on a year-over-year basis. During the same period in the prior year, the firm posted $5.96 earnings per share. On average, equities research analysts predict that Cummins Inc. will post 29.39 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a $2.20 dividend. This is a boost from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.3%. Cummins's dividend payout ratio is currently 41.52%.

Insiders Place Their Bets

In other news, VP Donald G. Jackson sold 730 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the transaction, the vice president directly owned 8,316 shares in the company, valued at approximately $5,912,010.72. This represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the sale, the vice president directly owned 11,986 shares of the company's stock, valued at $8,344,773.06. The trade was a 29.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 13,579 shares of company stock worth $9,377,684. Corporate insiders own 0.30% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on CMI. Morgan Stanley upped their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. JPMorgan Chase & Co. boosted their price objective on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Sanford C. Bernstein restated a "market perform" rating on shares of Cummins in a report on Friday, May 22nd. Weiss Ratings downgraded Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. Finally, Barclays lifted their price target on Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $740.07.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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