Evergreen Capital Management LLC Decreases Stock Holdings in Cummins Inc. $CMI

Key Points

• Evergreen Capital Management LLC reduced its holdings in Cummins Inc. by 6.9%, selling 1,706 shares and maintaining a total of 23,117 shares valued at approximately $7.25 million.
• Cummins announced a quarterly dividend of $2.00 per share, an increase from the previous dividend of $1.82, demonstrating confidence in its financial performance.
• Most recent earnings reported $6.43 per share, exceeding expectations and indicating a 1.7% decline in revenue year-over-year, despite a strong net margin of 8.72%.

Evergreen Capital Management LLC lessened its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 6.9% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 23,117 shares of the company's stock after selling 1,706 shares during the quarter. Evergreen Capital Management LLC's holdings in Cummins were worth $7,246,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in CMI. Vanguard Group Inc. lifted its holdings in shares of Cummins by 1.9% in 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. Northern Trust Corp lifted its holdings in shares of Cummins by 1.2% in the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after buying an additional 22,202 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Cummins by 6.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock worth $566,856,000 after buying an additional 99,009 shares in the last quarter. Raymond James Financial Inc. lifted its holdings in shares of Cummins by 152.3% in the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after buying an additional 817,384 shares in the last quarter. Finally, Royal Bank of Canada lifted its holdings in shares of Cummins by 3.7% in the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock worth $443,169,000 after buying an additional 44,907 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Cummins Trading Up 1.1%

NYSE:CMI traded up $4.49 during trading hours on Thursday, hitting $396.62. The company had a trading volume of 194,373 shares, compared to its average volume of 868,268. The company has a market capitalization of $54.65 billion, a PE ratio of 18.65, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The stock has a 50-day moving average price of $367.86 and a 200 day moving average price of $336.03. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. 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 (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.26 earnings per share. On average, equities research analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is presently 37.61%.

Wall Street Analyst Weigh In

CMI has been the topic of a number of recent analyst reports. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Melius Research raised shares of 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. Truist Financial raised their target price on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Finally, Robert W. Baird lifted their price target on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Nine research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Insiders Place Their Bets

In related news, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the sale, the vice president owned 20,738 shares in the company, valued at $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Robert Enright sold 1,860 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president directly owned 955 shares of the company's stock, valued at $384,158.30. This represents a 66.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 26,039 shares of company stock valued at $10,385,075 over the last quarter. 0.41% of the stock is 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.