Jacobs Levy Equity Management Inc. Sells 33,847 Shares of Cummins Inc. $CMI

Key Points

• Jacobs Levy Equity Management Inc. sold 33,847 shares of Cummins Inc., reducing its holdings by 17.5%, and now owns 159,244 shares valued at approximately $49.9 million.
• Cummins reported a strong quarterly earnings of $6.43 per share, surpassing estimates, despite a 1.7% revenue decrease compared to last year, with total revenues reaching $8.64 billion.
• The company announced a dividend increase to $2.00 per share, resulting in an annualized yield of 2.0%, up from the previous quarterly dividend of $1.82.

Jacobs Levy Equity Management Inc. lessened its position in Cummins Inc. (NYSE:CMI - Free Report) by 17.5% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 159,244 shares of the company's stock after selling 33,847 shares during the period. Jacobs Levy Equity Management Inc. owned 0.12% of Cummins worth $49,913,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. GAMMA Investing LLC boosted its holdings in Cummins by 38,220.5% in the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock valued at $373,428,000 after acquiring an additional 1,188,276 shares during the last quarter. Raymond James Financial Inc. boosted its holdings in Cummins by 152.3% in the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after acquiring an additional 817,384 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Cummins by 70.9% in the first quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock valued at $314,942,000 after acquiring an additional 424,294 shares during the last quarter. Nuveen LLC bought a new stake in Cummins in the first quarter valued at approximately $109,120,000. Finally, Vanguard Group Inc. boosted its holdings in Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after acquiring an additional 321,823 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insiders Place Their Bets

In other news, VP Robert Enright sold 1,860 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president owned 955 shares in the company, valued at $384,158.30. This trade represents a 66.07% decrease in their ownership of the stock. 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 firm's stock in a transaction that occurred 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 completion of 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. In the last quarter, insiders have sold 26,039 shares of company stock valued at $10,385,075. 0.41% of the stock is currently owned by corporate insiders.

Cummins Stock Up 2.6%

NYSE:CMI traded up $10.11 on Wednesday, hitting $404.89. The stock had a trading volume of 660,337 shares, compared to its average volume of 866,806. The business's fifty day moving average is $373.56 and its 200 day moving average is $336.29. The company has a market cap of $55.79 billion, a PE ratio of 19.04, a P/E/G ratio of 1.92 and a beta of 1.02. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38.

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 the consensus estimate of $5.21 by $1.22. The business 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 company's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $5.26 earnings per share. On average, equities research analysts expect 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. Shareholders of record on Friday, August 22nd were issued a $2.00 dividend. The ex-dividend date was Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 2.0%. Cummins's dividend payout ratio is currently 37.61%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Truist Financial upped their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Melius upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, September 3rd. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research report on Wednesday, September 3rd. Finally, The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and upped their target price for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Nine research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Cummins has an average rating of "Moderate Buy" and a consensus price target of $389.29.

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.