LSV Asset Management Sells 78,969 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• LSV Asset Management reduced its stake in Cummins Inc. by 6.7%, selling 78,969 shares, which now represents approximately 0.8% of their portfolio.
• A recent quarterly dividend increase from $1.82 to $2.00 per share signifies a positive outlook, resulting in a dividend yield of 2.2%.
• Research firms have mixed ratings on Cummins, with a consensus price target around $361.92 and recent target adjustments showing both increases and decreases.

LSV Asset Management lessened its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 6.7% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 1,105,935 shares of the company's stock after selling 78,969 shares during the period. Cummins accounts for approximately 0.8% of LSV Asset Management's holdings, making the stock its 23rd biggest position. LSV Asset Management owned about 0.80% of Cummins worth $346,644,000 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 business. Fiduciary Trust Co increased its holdings in Cummins by 1.2% during the 4th quarter. Fiduciary Trust Co now owns 2,456 shares of the company's stock worth $856,000 after purchasing an additional 28 shares during the period. Bank of Jackson Hole Trust raised its holdings in shares of Cummins by 1.2% in the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock valued at $887,000 after acquiring an additional 33 shares in the last quarter. Garrison Point Advisors LLC lifted its stake in Cummins by 1.1% in the fourth quarter. Garrison Point Advisors LLC now owns 3,190 shares of the company's stock worth $1,112,000 after acquiring an additional 35 shares during the period. Ascent Group LLC increased its position in Cummins by 2.7% during the 4th quarter. Ascent Group LLC now owns 1,417 shares of the company's stock valued at $494,000 after purchasing an additional 37 shares during the period. Finally, Central Pacific Bank Trust Division raised its holdings in shares of Cummins by 5.0% in the 1st quarter. Central Pacific Bank Trust Division now owns 815 shares of the company's stock valued at $255,000 after purchasing an additional 39 shares in the last quarter. 83.46% of the stock is owned by institutional investors.

Cummins Price Performance

Shares of Cummins stock traded up $5.64 during trading on Monday, hitting $361.48. The stock had a trading volume of 949,524 shares, compared to its average volume of 947,809. The business has a fifty day moving average of $334.30 and a two-hundred day moving average of $330.82. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $387.90. The firm has a market cap of $49.80 billion, a P/E ratio of 17.98, a PEG ratio of 1.98 and a beta of 1.02. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.34 and a quick ratio of 0.81.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Monday, May 5th. The company reported $5.96 EPS for the quarter, beating the consensus estimate of $4.92 by $1.04. The business had revenue of $8.17 billion during the quarter, compared to the consensus estimate of $8.22 billion. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The firm's quarterly revenue was down 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.08 EPS. On average, sell-side analysts expect that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a $2.00 dividend. 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 dividend yield of 2.2%. Cummins's dividend payout ratio is presently 36.22%.

Insider Buying and Selling at Cummins

In related news, Director John H. Stone bought 1,000 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was purchased at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the purchase, the director directly owned 2,441 shares in the company, valued at $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.41% of the company's stock.

Analysts Set New Price Targets

CMI has been the subject of several recent analyst reports. Citigroup reiterated a "buy" rating and set a $360.00 price objective (up previously from $350.00) on shares of Cummins in a research note on Tuesday, June 24th. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Truist Financial cut their price objective on Cummins from $420.00 to $338.00 and set a "hold" rating for the company in a research note on Tuesday, April 8th. Barclays increased their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Finally, Morgan Stanley lifted their price objective on Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $361.92.

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.