Cummins Inc. $CMI Shares Sold by Graham Capital Management L.P.

Key Points

• Graham Capital Management L.P. cut its stake in Cummins Inc. by 64.8%, owning 5,356 shares after selling 9,844 shares during the first quarter, valued at approximately $1,679,000.
• In the fourth quarter, numerous hedge funds adjusted their positions, with Balyasny Asset Management L.P. increasing its holdings by 5,553.8%, now owning 134,052 shares worth $46,731,000.
• Cummins announced a quarterly dividend of $2.00, reflecting an increase from the previous dividend of $1.82, with a dividend yield of 2.0%.

Graham Capital Management L.P. cut its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 64.8% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 5,356 shares of the company's stock after selling 9,844 shares during the quarter. Graham Capital Management L.P.'s holdings in Cummins were worth $1,679,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the company. Olde Wealth Management LLC purchased a new position in Cummins in the first quarter worth about $30,000. Accredited Wealth Management LLC bought a new stake in Cummins in the first quarter worth about $31,000. Capital A Wealth Management LLC bought a new stake in shares of Cummins during the fourth quarter valued at approximately $32,000. Opal Wealth Advisors LLC bought a new stake in shares of Cummins during the first quarter valued at approximately $37,000. Finally, Richardson Financial Services Inc. bought a new stake in shares of Cummins during the first quarter valued at approximately $39,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the transaction, the vice president owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction that occurred on 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 transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. The trade was a 38.67% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 26,039 shares of company stock worth $10,385,075. Insiders own 0.41% of the company's stock.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a research note on Wednesday. Citigroup lifted their price target on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Truist Financial upped their price target on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Finally, The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and upped their price target for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Cummins has a consensus rating of "Moderate Buy" and a consensus target price of $389.29.

Cummins Price Performance

NYSE CMI traded down $0.80 during trading hours on Friday, hitting $400.13. 864,159 shares of the company's stock traded hands, compared to its average volume of 706,473. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $408.38. The company has a market capitalization of $55.13 billion, a PE ratio of 18.81, a PEG ratio of 1.93 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The firm's 50-day moving average is $370.88 and its 200-day moving average is $336.01.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly 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. The business had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business's revenue was down 1.7% compared to the same quarter last year. During the same quarter last year, the firm earned $5.26 EPS. Equities analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were issued 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 dividend yield of 2.0%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 37.61%.

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.