Legacy Trust Cuts Stake in Cummins Inc. $CMI

Key Points

• Legacy Trust reduced its stake in Cummins Inc. by 8.9%, selling 1,764 shares, which now constitute 1.4% of its investment portfolio worth approximately $5.9 million.
• Cummins recently declared a $2.00 quarterly dividend, up from $1.82, reflecting a 1.8% dividend yield and a payout ratio of 37.61%.
• Despite challenging revenue trends, Cummins reported $6.43 earnings per share, exceeding estimates, and generated $8.64 billion in revenue, beating analyst expectations of $8.45 billion.

Legacy Trust lowered its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 8.9% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 18,034 shares of the company's stock after selling 1,764 shares during the period. Cummins comprises 1.4% of Legacy Trust's investment portfolio, making the stock its 26th biggest position. Legacy Trust's holdings in Cummins were worth $5,906,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also modified their holdings of the company. Olde Wealth Management LLC purchased a new stake in shares of Cummins during the first quarter worth about $30,000. Accredited Wealth Management LLC purchased a new stake in shares of Cummins during the first quarter worth about $31,000. Opal Wealth Advisors LLC purchased a new stake in shares of Cummins during the first quarter worth about $37,000. Richardson Financial Services Inc. purchased a new stake in shares of Cummins during the first quarter worth about $39,000. Finally, Costello Asset Management INC purchased a new stake in shares of Cummins during the first quarter worth about $40,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

Cummins stock opened at $432.87 on Friday. The firm has a 50 day simple moving average of $400.74 and a 200-day simple moving average of $345.95. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $437.66. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The stock has a market cap of $59.65 billion, a price-to-earnings ratio of 20.35, a price-to-earnings-growth ratio of 2.09 and a beta of 1.04.

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

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.8%. Cummins's dividend payout ratio is currently 37.61%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on CMI shares. 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. Truist Financial increased their price objective on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a report on Wednesday, September 3rd. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Finally, Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $393.57.

Insiders Place Their Bets

In other news, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred 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 of the company's stock, valued at $2,118,659.91. This represents a 20.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 35,119 shares of company stock worth $14,159,885. 0.41% of the stock is currently owned by company insiders.

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.

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