Foundations Investment Advisors LLC Reduces Stock Position in Cummins Inc. (NYSE:CMI)

Key Points

• Foundations Investment Advisors LLC reduced its holdings in Cummins Inc. (NYSE:CMI) by 36.8%, now owning 11,875 shares valued at approximately $3.72 million.
• Analysts have mixed opinions on Cummins, with Goldman Sachs upgrading it to a "buy" rating and raising its price target to $431, while Truist Financial downgraded it to a "hold" with a target of $338.
• Cummins announced an increase in its quarterly dividend to $2.00 per share, reflecting a positive adjustment from the previous $1.82, representing an annualized yield of 2.16%.

Foundations Investment Advisors LLC trimmed its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 36.8% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 11,875 shares of the company's stock after selling 6,913 shares during the quarter. Foundations Investment Advisors LLC's holdings in Cummins were worth $3,722,000 as of its most recent filing with the SEC.

Other hedge funds have also bought and sold shares of the company. Meeder Asset Management Inc. increased its position in Cummins by 208.0% during the fourth quarter. Meeder Asset Management Inc. now owns 77 shares of the company's stock worth $27,000 after acquiring an additional 52 shares during the period. Olde Wealth Management LLC bought a new position in Cummins in the 1st quarter valued at about $30,000. Capital A Wealth Management LLC bought a new position in Cummins in the 4th quarter valued at about $32,000. Opal Wealth Advisors LLC bought a new position in Cummins in the 1st quarter valued at about $37,000. Finally, Richardson Financial Services Inc. bought a new position in Cummins in the 1st quarter valued at about $39,000. 83.46% of the stock is owned by institutional investors.

Insider Activity

In other Cummins news, Director John H. Stone acquired 1,000 shares of the business's stock in a transaction dated Friday, May 16th. The stock was bought 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 of the company's stock, valued at approximately $810,607.28. This trade 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 at this link. Company insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CMI. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and raised their price target for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Barclays raised their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Evercore ISI reduced their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Robert W. Baird lifted their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Finally, UBS Group downgraded shares of Cummins from a "buy" rating to a "sell" rating and cut their target price for the stock from $400.00 to $240.00 in a research report on Monday, April 7th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, Cummins has a consensus rating of "Hold" and an average target price of $361.92.

Cummins Stock Performance

NYSE CMI traded down $12.05 during trading hours on Friday, reaching $355.58. 393,628 shares of the company were exchanged, compared to its average volume of 871,858. The stock has a market capitalization of $48.98 billion, a P/E ratio of 17.66, a P/E/G ratio of 2.03 and a beta of 1.03. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.40. The business's 50 day simple moving average is $333.53 and its 200-day simple moving average is $331.33. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $387.90.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Monday, May 5th. The company reported $5.96 earnings per share for the quarter, topping the consensus estimate of $4.92 by $1.04. The firm had revenue of $8.17 billion during the quarter, compared to the consensus estimate of $8.22 billion. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The company's revenue was down 2.7% on a year-over-year basis. During the same quarter last year, the company earned $5.08 earnings per share. On average, equities research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.2%. Cummins's dividend payout ratio is currently 36.22%.

Cummins Company 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.