Cummins Inc. $CMI Shares Sold by Kayne Anderson Rudnick Investment Management LLC

Key Points

• Kayne Anderson Rudnick Investment Management LLC reduced its stake in Cummins Inc. by 12.2%, selling 1,080 shares and holding 7,767 shares valued at $2,435,000 as of the most recent reporting period.
• Cummins has been rated positively by analysts, with Wolfe Research upgrading the stock from "hold" to "outperform" and multiple firms increasing their price targets, signaling confidence in its future performance.
• The company announced a quarterly dividend increase from $1.82 to $2.00, representing a 2.0% yield, effective for shareholders of record on August 22nd.

Kayne Anderson Rudnick Investment Management LLC lessened its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 12.2% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 7,767 shares of the company's stock after selling 1,080 shares during the quarter. Kayne Anderson Rudnick Investment Management LLC's holdings in Cummins were worth $2,435,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Capital A Wealth Management LLC acquired a new stake in Cummins in the 4th quarter valued at approximately $32,000. Olde Wealth Management LLC acquired a new stake in Cummins in the 1st quarter valued at approximately $30,000. Accredited Wealth Management LLC acquired a new stake in Cummins in the 1st quarter valued at approximately $31,000. Opal Wealth Advisors LLC acquired a new stake in Cummins in the 1st quarter valued at approximately $37,000. Finally, Richardson Financial Services Inc. acquired a new stake in Cummins in the 1st quarter valued at approximately $39,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on CMI shares. Citigroup lifted their target price on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Evercore ISI restated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. 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. Finally, The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Seven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Cummins currently has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Price Performance

Shares of CMI stock traded down $3.49 during trading hours on Friday, hitting $398.43. The company's stock had a trading volume of 593,343 shares, compared to its average volume of 886,784. The business has a fifty day moving average of $363.36 and a 200-day moving average of $335.49. The stock has a market cap of $54.90 billion, a price-to-earnings ratio of 18.73, a P/E/G ratio of 1.94 and a beta of 1.02. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $408.38. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company's quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.26 earnings per share. As a group, equities research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is 37.61%.

Insider Buying and Selling at Cummins

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the firm'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 transaction, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 26,039 shares of company stock worth $10,385,075. 0.41% of the stock is currently owned by 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.