Hamlin Capital Management LLC Has $166 Million Stock Position in Cummins Inc. (NYSE:CMI)

Key Points

• Hamlin Capital Management LLC increased its stake in Cummins Inc. by 1.8%, holding 529,613 shares valued at approximately $166 million, representing 4.0% of its total holdings.
• Cummins announced a quarterly dividend increase from $1.82 to $2.00 per share, with the dividend yield now at 2.0% and a payout ratio of 34.23%.
• Analysts have set new price targets for Cummins, with Morgan Stanley raising its price target to $350 and Citigroup boosting theirs to $425, reflecting a generally positive outlook for the stock.

Hamlin Capital Management LLC raised its position in Cummins Inc. (NYSE:CMI - Free Report) by 1.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 529,613 shares of the company's stock after purchasing an additional 9,425 shares during the quarter. Cummins makes up approximately 4.0% of Hamlin Capital Management LLC's holdings, making the stock its 17th biggest position. Hamlin Capital Management LLC owned about 0.38% of Cummins worth $166,002,000 at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. Fayez Sarofim & Co lifted its stake in Cummins by 72.3% in the fourth quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock valued at $2,857,000 after acquiring an additional 3,440 shares during the last quarter. Alpha Cubed Investments LLC bought a new stake in Cummins in the first quarter worth $440,000. Assenagon Asset Management S.A. raised its holdings in Cummins by 8.9% during the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after buying an additional 1,114 shares in the last quarter. Artemis Investment Management LLP increased its holdings in shares of Cummins by 19.1% during the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock valued at $2,428,000 after acquiring an additional 1,241 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd raised its stake in shares of Cummins by 186.5% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 20,816 shares of the company's stock valued at $6,525,000 after acquiring an additional 13,551 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director John H. Stone acquired 1,000 shares of the company's stock in a transaction on Friday, May 16th. The stock was purchased at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the purchase, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. The trade was a 69.40% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the sale, the vice president owned 7,693 shares in the company, valued at $2,994,038.67. This represents a 38.67% decrease in their position. The disclosure for this sale can be found here. 0.41% of the stock is owned by corporate insiders.

Cummins Stock Up 1.9%

CMI opened at $406.77 on Thursday. The company has a market capitalization of $56.05 billion, a P/E ratio of 19.12, a P/E/G ratio of 1.94 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 fifty day moving average price is $344.43 and its two-hundred day moving average price is $332.33. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period last year, the firm earned $5.26 EPS. On average, analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 2.0%. Cummins's dividend payout ratio is 34.23%.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Morgan Stanley increased their price target on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Barclays upped their price objective on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Evercore ISI dropped their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a report on Monday, May 19th. The Goldman Sachs Group raised 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 report on Tuesday, May 27th. Finally, Citigroup boosted their price objective on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $370.83.

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.

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