Mizuho Securities USA LLC Decreases Stock Holdings in Cummins Inc. (NYSE:CMI)

Key Points

• Mizuho Securities USA LLC reduced its stake in Cummins Inc. by 15.3% in the first quarter, now holding shares worth approximately $3.45 million.
• Several analysts have raised their price targets for Cummins, with the average consensus currently at $370.83, indicating a mixed outlook among research ratings.
• Cummins recently declared a quarterly dividend of $2.00 per share, an increase from the previous $1.82, reflecting its ongoing commitment to returning value to shareholders.

Mizuho Securities USA LLC lowered its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 15.3% during the 1st quarter, according to its most recent filing with the SEC. The firm owned 11,008 shares of the company's stock after selling 1,994 shares during the period. Mizuho Securities USA LLC's holdings in Cummins were worth $3,450,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the business. Brighton Jones LLC grew its holdings in shares of Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after purchasing an additional 83 shares in the last quarter. CenterBook Partners LP purchased a new stake in shares of Cummins during the fourth quarter worth about $472,000. Sterling Capital Management LLC boosted its position in Cummins by 32.1% in the fourth quarter. Sterling Capital Management LLC now owns 13,242 shares of the company's stock valued at $4,616,000 after buying an additional 3,217 shares during the last quarter. Rockefeller Capital Management L.P. lifted its holdings in Cummins by 32.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 75,770 shares of the company's stock valued at $26,409,000 after acquiring an additional 18,528 shares during the period. Finally, Townsquare Capital LLC lifted its holdings in Cummins by 81.9% in the fourth quarter. Townsquare Capital LLC now owns 5,978 shares of the company's stock valued at $2,084,000 after acquiring an additional 2,691 shares during the period. Institutional investors own 83.46% of the company's stock.

Cummins Price Performance

NYSE:CMI traded down $4.76 during mid-day trading on Friday, reaching $400.04. The stock had a trading volume of 200,646 shares, compared to its average volume of 886,135. The stock has a 50-day simple moving average of $346.07 and a two-hundred day simple moving average of $332.72. The stock has a market capitalization of $55.12 billion, a PE ratio of 18.82, a P/E/G ratio of 1.98 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results 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. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the previous year, the business earned $5.26 earnings per share. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. On average, equities analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders 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 yield of 2.0%. Cummins's dividend payout ratio is presently 34.23%.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a research report on Monday. Wells Fargo & Company raised Cummins to an "overweight" rating in a research report on Monday. Morgan Stanley lifted their target price on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday, May 6th. JPMorgan Chase & Co. lifted their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Finally, Citigroup boosted their price target on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, Cummins currently has an average rating of "Hold" and a consensus target price of $370.83.

Insider Buying and Selling at Cummins

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction dated 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 transaction, the vice president directly owned 7,693 shares in the company, valued at $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the company'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 completion of the transaction, the chief financial officer directly owned 31,582 shares in the company, valued at approximately $12,790,710. The trade was a 17.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 17,870 shares of company stock worth $7,091,899 over the last three months. 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.