Cummins Inc. (NYSE:CMI) Shares Sold by Fayez Sarofim & Co

Key Points

• Fayez Sarofim & Co has reduced its holdings in Cummins Inc. by 15.7%, owning 6,909 shares valued at $2.17 million after selling 1,286 shares.
• Recent quarterly earnings showed Cummins reporting $6.43 earnings per share, surpassing estimates, with total revenue at $8.64 billion.
• Cummins increased its quarterly dividend to $2.00 per share, marking an annualized yield of 2.1%, up from the previous dividend of $1.82.

Fayez Sarofim & Co decreased its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 15.7% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 6,909 shares of the company's stock after selling 1,286 shares during the quarter. Fayez Sarofim & Co's holdings in Cummins were worth $2,166,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Olde Wealth Management LLC purchased a new position in Cummins during the first quarter worth approximately $30,000. Capital A Wealth Management LLC purchased a new position in Cummins during the fourth quarter worth approximately $32,000. Opal Wealth Advisors LLC purchased a new position in Cummins during the first quarter worth approximately $37,000. Richardson Financial Services Inc. purchased a new position in Cummins during the first quarter worth approximately $39,000. Finally, Costello Asset Management INC purchased a new position in Cummins during the first quarter worth approximately $40,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Analyst Ratings Changes

Several research firms have issued reports on CMI. Citigroup raised their target price on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Evercore ISI decreased their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. Truist Financial increased their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday. Finally, Morgan Stanley upped their price objective on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a report on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and five have given a buy rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Hold" and an average price target of $370.83.

Insider Buying and Selling at Cummins

In related news, Director John H. Stone bought 1,000 shares of Cummins stock in a transaction that occurred on Friday, May 16th. The shares were purchased at an average price of $332.08 per share, with a total value of $332,080.00. Following the purchase, the director owned 2,441 shares in the company, valued at $810,607.28. This represents a 69.40% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.41% of the stock is currently owned by corporate insiders.

Cummins Stock Performance

Cummins stock traded up $2.96 during mid-day trading on Friday, reaching $387.57. 932,746 shares of the company were exchanged, compared to its average volume of 1,043,067. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $391.56. The firm's 50-day simple moving average is $339.84 and its two-hundred day simple moving average is $331.47. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.81 and a current ratio of 1.64. The firm has a market cap of $53.40 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 1.91 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping 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 company had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the previous year, the firm posted $5.26 EPS. The firm's quarterly revenue was down 1.7% on a year-over-year basis. Equities analysts predict that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The company also recently declared 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. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is 34.23%.

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.