Oarsman Capital Inc. Buys 700 Shares of Cummins Inc. $CMI

Key Points

• Oarsman Capital Inc. increased its stake in Cummins Inc. by 16.0%, now holding 5,079 shares valued at approximately $1.59 million.
• Cummins recently declared a quarterly dividend of $2.00 per share, up from its previous dividend of $1.82, indicating a solid commitment to returning value to shareholders.
• The company reported earnings of $6.43 per share for the last quarter, exceeding analysts' expectations, although revenue decreased by 1.7% year-over-year.

Oarsman Capital Inc. lifted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 16.0% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 5,079 shares of the company's stock after buying an additional 700 shares during the quarter. Oarsman Capital Inc.'s holdings in Cummins were worth $1,592,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in CMI. Olde Wealth Management LLC acquired a new stake in Cummins in the 1st quarter worth about $30,000. Accredited Wealth Management LLC purchased a new position in shares of Cummins in the 1st quarter worth about $31,000. Capital A Wealth Management LLC purchased a new position in shares of Cummins in the 4th quarter worth about $32,000. Opal Wealth Advisors LLC purchased a new position in shares of Cummins in the 1st quarter worth about $37,000. Finally, Richardson Financial Services Inc. purchased a new position in shares of Cummins in the 1st quarter worth about $39,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Price Performance

Shares of Cummins stock traded down $5.42 during mid-day trading on Tuesday, reaching $393.03. 149,978 shares of the stock were exchanged, compared to its average volume of 870,590. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38. The firm has a 50-day simple moving average of $364.99 and a 200 day simple moving average of $335.23. 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 company has a market cap of $54.15 billion, a price-to-earnings ratio of 18.49, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the prior year, the firm earned $5.26 EPS. The company's revenue was down 1.7% on a year-over-year basis. On average, sell-side analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Friday, August 22nd. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is currently 37.61%.

Analyst Upgrades and Downgrades

CMI has been the topic of several analyst reports. Morgan Stanley raised their target price on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. JPMorgan Chase & Co. raised their price target on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a report on Tuesday, May 6th. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a research report on Monday, August 11th. Truist Financial increased their price target on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Finally, Robert W. Baird boosted their target price on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Seven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $370.83.

Insider Activity at Cummins

In other Cummins news, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction dated Thursday, August 14th. The shares were 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 in the company, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Mark Andrew Smith sold 6,500 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the transaction, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 26,039 shares of company stock worth $10,385,075. Insiders own 0.41% of the company's stock.

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.