Neuberger Berman Group LLC Reduces Holdings in Cummins Inc. (NYSE:CMI)

Key Points

• Neuberger Berman Group LLC reduced its stake in Cummins Inc. by 22.1% during the first quarter, now owning shares worth $157.33 million.
• Vanguard Group Inc. increased its stake in Cummins by 1.9%, bringing its total to over 17 million shares valued at approximately $5.42 billion.
• Cummins has announced a quarterly dividend increase to $2.00 per share, up from $1.82, reflecting a strong dividend yield of 2.0%.

Neuberger Berman Group LLC cut its stake in Cummins Inc. (NYSE:CMI - Free Report) by 22.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 501,175 shares of the company's stock after selling 142,307 shares during the period. Neuberger Berman Group LLC owned approximately 0.36% of Cummins worth $157,325,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Fayez Sarofim & Co raised its holdings in Cummins by 72.3% in the 4th quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock valued at $2,857,000 after acquiring an additional 3,440 shares during the period. Alpha Cubed Investments LLC bought a new position in shares of Cummins during the first quarter worth approximately $440,000. Assenagon Asset Management S.A. increased its holdings in shares of Cummins by 8.9% during the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock worth $4,283,000 after purchasing an additional 1,114 shares during the period. Artemis Investment Management LLP increased its holdings in shares of Cummins by 19.1% during the first quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock worth $2,428,000 after purchasing an additional 1,241 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of Cummins by 11.6% during the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after purchasing an additional 126,362 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on CMI. JPMorgan Chase & Co. increased their price target on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 6th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and increased their price target for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Morgan Stanley increased their price target on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. Citigroup increased their price target on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, Evercore ISI cut their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. One 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 data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $370.83.

Cummins Stock Performance

CMI traded down $6.35 during midday trading on Friday, reaching $398.45. The company had a trading volume of 701,253 shares, compared to its average volume of 1,050,250. The business has a 50-day moving average price of $346.07 and a two-hundred day moving average price of $332.72. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The stock has a market cap of $54.90 billion, a PE ratio of 18.73, a P/E/G ratio of 1.97 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly 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. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates 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 previous year, the firm posted $5.26 earnings per share. 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 announced 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 is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. Cummins's payout ratio is currently 34.23%.

Insider Buying and Selling

In related news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, the vice president owned 7,693 shares of the company's stock, valued at $2,994,038.67. This represents 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, VP Jennifer Mary Bush sold 520 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $388.13, for a total value of $201,827.60. Following the sale, the vice president owned 15,130 shares in the company, valued at $5,872,406.90. The trade was a 3.32% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 17,870 shares of company stock valued at $7,091,899. Company insiders own 0.41% of the company's stock.

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.