Kingswood Wealth Advisors LLC Lowers Stake in Cummins Inc. $CMI

Key Points

• Kingswood Wealth Advisors LLC decreased its stake in Cummins Inc. by 75.6% during Q2, reducing their holdings to 1,508 shares valued at approximately $494,000.
• Cummins reported Q2 earnings of $6.43 per share, exceeding analysts' expectations, and had revenue of $8.64 billion, although this was a decline of 1.7% compared to the previous year.
• The company recently increased its quarterly dividend to $2.00, representing an annualized dividend yield of 1.9%, up from the previous $1.82 per share.

Kingswood Wealth Advisors LLC cut its stake in Cummins Inc. (NYSE:CMI - Free Report) by 75.6% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,508 shares of the company's stock after selling 4,684 shares during the period. Kingswood Wealth Advisors LLC's holdings in Cummins were worth $494,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Olde Wealth Management LLC acquired a new stake in shares of Cummins in the first quarter worth approximately $30,000. Accredited Wealth Management LLC acquired a new stake in shares of Cummins in the first quarter worth approximately $31,000. Opal Wealth Advisors LLC acquired a new stake in shares of Cummins in the first quarter worth approximately $37,000. Richardson Financial Services Inc. acquired a new stake in shares of Cummins in the first quarter worth approximately $39,000. Finally, Costello Asset Management INC acquired a new stake in shares of Cummins in the first quarter worth approximately $40,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Trading Down 2.3%

NYSE CMI opened at $426.20 on Friday. The company's fifty day simple moving average is $406.06 and its 200-day simple moving average is $348.80. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $440.51. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The stock has a market cap of $58.73 billion, a P/E ratio of 20.04, a PEG ratio of 2.11 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last posted its 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 business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period in the previous year, the company posted $5.26 earnings per share. Equities research analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. Cummins's payout ratio is presently 37.61%.

Insiders Place Their Bets

In related news, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the sale, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total transaction of $748,203.60. Following the completion of the sale, the vice president owned 955 shares of the company's stock, valued at approximately $384,158.30. This trade represents a 66.07% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 43,119 shares of company stock valued at $17,674,285. 0.41% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of research analysts have weighed in on CMI shares. 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 research report on Friday, July 11th. Barclays lifted their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Truist Financial lifted their price target on shares of Cummins from $380.00 to $434.00 and gave the company a "hold" rating in a research report on Wednesday. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cummins in a research report on Saturday, September 27th. Ten equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $397.43.

Cummins Company 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.

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