IFG Advisory LLC Lowers Position in Cummins Inc. (NYSE:CMI)

Key Points

• IFG Advisory LLC has reduced its stake in Cummins Inc. by 12.1%, selling 905 shares and now holding 6,588 shares valued at approximately $2.07 million.
• Analysts' ratings for Cummins vary, with a consensus "Hold" rating and a target price of $361.92, while several firms have increased their target prices recently.
• Cummins announced a new quarterly dividend of $2.00 per share, raising its previous dividend of $1.82, reflecting a positive change in its payout strategy.

IFG Advisory LLC trimmed its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 12.1% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,588 shares of the company's stock after selling 905 shares during the quarter. IFG Advisory LLC's holdings in Cummins were worth $2,065,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. TIAA Trust National Association increased its stake in Cummins by 50.3% during the 1st quarter. TIAA Trust National Association now owns 3,602 shares of the company's stock valued at $1,129,000 after purchasing an additional 1,205 shares in the last quarter. Baker Avenue Asset Management LP purchased a new stake in shares of Cummins during the 1st quarter valued at about $250,000. Blueshift Asset Management LLC purchased a new position in shares of Cummins in the first quarter worth approximately $586,000. Bank of Jackson Hole Trust boosted its holdings in shares of Cummins by 1.2% in the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock worth $887,000 after buying an additional 33 shares during the last quarter. Finally, US Bancorp DE boosted its holdings in shares of Cummins by 0.8% in the first quarter. US Bancorp DE now owns 75,861 shares of the company's stock worth $23,778,000 after buying an additional 623 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Cummins news, Director John H. Stone acquired 1,000 shares of the stock in a transaction that occurred on Friday, May 16th. The stock was bought at an average cost of $332.08 per share, with a total value of $332,080.00. Following the completion of the purchase, the director directly owned 2,441 shares in the company, valued at $810,607.28. The trade was a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.41% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on CMI shares. Truist Financial lowered their price target on shares of Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a report on Tuesday, April 8th. Robert W. Baird lifted their price target on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. UBS Group downgraded shares of Cummins from a "buy" rating to a "sell" rating and lowered their price target for the company from $400.00 to $240.00 in a report on Monday, April 7th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Citigroup reiterated a "buy" rating and set a $360.00 price objective (up previously from $350.00) on shares of Cummins in a research report on Tuesday, June 24th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $361.92.

Cummins Trading Up 4.5%

Shares of NYSE CMI traded up $16.18 during mid-day trading on Tuesday, reaching $377.77. The company had a trading volume of 389,512 shares, compared to its average volume of 871,998. The business's 50-day moving average is $335.18 and its 200-day moving average is $330.79. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The stock has a market cap of $52.04 billion, a price-to-earnings ratio of 18.80, a price-to-earnings-growth ratio of 1.98 and a beta of 1.02. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $387.90.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 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 analysts' expectations of $8.45 billion. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The business's revenue for the quarter was down 1.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.26 earnings per share. Equities analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be issued a $2.00 dividend. The ex-dividend date is Friday, August 22nd. This is a boost 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%. Cummins's dividend payout ratio (DPR) is currently 36.22%.

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.