HighTower Advisors LLC Has $125.36 Million Stock Position in Cummins Inc. (NYSE:CMI)

Key Points

• HighTower Advisors LLC has reduced its holdings in Cummins Inc. by 19.4%, owning approximately 399,940 shares valued at $125,357,000 after selling 96,184 shares.
• Analysts have responded positively to Cummins, with Wolfe Research upgrading the stock to an "outperform" rating and Truist Financial increasing its price target from $342 to $380.
• Cummins recently announced a quarterly dividend of $2.00, which represents an annualized yield of 2.0%, an increase from the previous $1.82 per share.

HighTower Advisors LLC cut its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 19.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 399,940 shares of the company's stock after selling 96,184 shares during the quarter. HighTower Advisors LLC owned 0.29% of Cummins worth $125,357,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of the business. Brighton Jones LLC boosted its holdings in Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after purchasing an additional 83 shares during the last quarter. Townsquare Capital LLC raised its holdings in shares of Cummins by 81.9% during the fourth quarter. Townsquare Capital LLC now owns 5,978 shares of the company's stock worth $2,084,000 after acquiring an additional 2,691 shares in the last quarter. Sagespring Wealth Partners LLC bought a new position in Cummins during the fourth quarter valued at about $576,000. Advisors Capital Management LLC acquired a new stake in shares of Cummins in the fourth quarter valued at about $275,000. Finally, Cohen & Steers Inc. grew its position in shares of Cummins by 5.3% in the fourth quarter. Cohen & Steers Inc. now owns 1,117 shares of the company's stock valued at $389,000 after purchasing an additional 56 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, VP Jennifer Mary Bush sold 520 shares of the business's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the sale, the vice president directly owned 15,130 shares of the company's stock, valued at $5,872,406.90. The trade was a 3.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, 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. Insiders sold 22,872 shares of company stock worth $9,107,105 over the last 90 days. Insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on CMI. Morgan Stanley lifted their price objective on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. 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. Truist Financial boosted their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research report on Thursday, August 7th. Finally, Robert W. Baird boosted their target price on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. One 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 MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $370.83.

Cummins Price Performance

Shares of CMI traded down $6.35 during trading hours on Friday, reaching $398.45. 701,253 shares of the company traded hands, compared to its average volume of 1,050,250. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $54.90 billion, a PE ratio of 18.73, a price-to-earnings-growth ratio of 1.97 and a beta of 1.02. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The stock has a fifty day simple moving average of $347.51 and a 200 day simple moving average of $333.05.

Cummins (NYSE:CMI - Get Free Report) last issued 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 firm had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The firm's quarterly revenue was down 1.7% on a year-over-year basis. During the same period last year, the company earned $5.26 EPS. As a group, research analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

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