Cummins Inc. (NYSE:CMI) Stake Raised by Independent Advisor Alliance

Key Points

• Independent Advisor Alliance increased its stake in Cummins Inc. by 15.3% in the first quarter, owning a total of 5,631 shares valued at approximately $1.77 million.
• Cummins recently disclosed a quarterly dividend increase to $2.00 per share, up from $1.82, with a payment date set for September 4th.
• Wall Street analysts have mixed ratings on Cummins, with a consensus rating of "Hold" and a target price of about $370.83, reflecting cautious optimism in the stock's performance.

Independent Advisor Alliance grew its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 15.3% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 5,631 shares of the company's stock after purchasing an additional 748 shares during the quarter. Independent Advisor Alliance's holdings in Cummins were worth $1,765,000 as of its most recent filing with the SEC.

Several other hedge funds also recently made changes to their positions in CMI. Brighton Jones LLC grew its stake in Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after acquiring an additional 83 shares during the period. Townsquare Capital LLC raised its stake in shares of Cummins by 81.9% in the 4th quarter. Townsquare Capital LLC now owns 5,978 shares of the company's stock valued at $2,084,000 after purchasing an additional 2,691 shares in the last quarter. Sagespring Wealth Partners LLC bought a new stake in shares of Cummins during the 4th quarter valued at about $576,000. Advisors Capital Management LLC bought a new stake in shares of Cummins during the 4th quarter valued at about $275,000. Finally, Cohen & Steers Inc. grew its position in Cummins by 5.3% in the 4th quarter. Cohen & Steers Inc. now owns 1,117 shares of the company's stock worth $389,000 after purchasing an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Down 1.6%

Shares of Cummins stock traded down $6.35 during midday trading on Friday, reaching $398.45. 701,253 shares of the company's stock traded hands, compared to its average volume of 889,458. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The company has a market cap of $54.90 billion, a PE ratio of 18.73, a price-to-earnings-growth ratio of 1.98 and a beta of 1.02. The stock has a 50 day moving average of $346.07 and a 200-day moving average of $332.72. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38.

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. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The company had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the previous year, the firm earned $5.26 EPS. The firm's revenue was down 1.7% compared to the same quarter last year. As a group, equities analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed 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. The ex-dividend date is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. Cummins's dividend payout ratio (DPR) is 34.23%.

Analyst Ratings Changes

Several analysts recently commented on the stock. Robert W. Baird increased 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. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research report on Monday. JPMorgan Chase & Co. raised their price objective on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a report on Tuesday, May 6th. Morgan Stanley lifted their price target on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Finally, Barclays boosted their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $370.83.

Insider Buying and Selling

In other news, CFO Mark Andrew Smith sold 6,500 shares of Cummins stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 17,870 shares of company stock worth $7,091,899. 0.41% of the stock is owned by corporate insiders.

Cummins 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.