Pacer Advisors Inc. Lowers Holdings in Cummins Inc. (NYSE:CMI)

Key Points

• Pacer Advisors Inc. has reduced its stake in Cummins Inc. by 23.4%, now owning 8,628 shares valued at approximately $2.7 million as of the last reporting period.
• Overall, institutional ownership in Cummins is high at 83.46%, with several hedge funds significantly increasing their positions recently.
• Cummins has announced a quarterly dividend of $2.00 per share, raising its annual dividend from $1.82 to $8.00, reflecting an annual yield of 2.18%.

Pacer Advisors Inc. trimmed its stake in Cummins Inc. (NYSE:CMI - Free Report) by 23.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 8,628 shares of the company's stock after selling 2,637 shares during the quarter. Pacer Advisors Inc.'s holdings in Cummins were worth $2,704,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Geode Capital Management LLC grew its position in shares of Cummins by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 3,377,583 shares of the company's stock valued at $1,174,504,000 after purchasing an additional 84,112 shares during the period. Northern Trust Corp boosted its position in Cummins by 15.1% during the 4th quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock worth $656,418,000 after acquiring an additional 246,807 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Cummins by 6.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock worth $566,856,000 after purchasing an additional 99,009 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Cummins by 0.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,585,802 shares of the company's stock worth $552,820,000 after purchasing an additional 12,722 shares in the last quarter. Finally, Royal Bank of Canada raised its stake in shares of Cummins by 3.7% during the 4th quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock worth $443,169,000 after purchasing an additional 44,907 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Evercore ISI dropped their price target on Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Barclays increased their price target on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Morgan Stanley increased 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. Finally, UBS Group cut Cummins from a "buy" rating to a "sell" rating and lowered their price objective for the stock from $400.00 to $240.00 in a research report on Monday, April 7th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $361.92.

Insider Buying and Selling

In other news, Director John H. Stone bought 1,000 shares of the firm's stock in a transaction dated Friday, May 16th. The stock was purchased at an average price of $332.08 per share, with a total value of $332,080.00. Following the transaction, the director owned 2,441 shares of the company's stock, valued at approximately $810,607.28. The trade was a 69.40% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.41% of the stock is owned by insiders.

Cummins Trading Down 0.2%

CMI stock traded down $0.56 during mid-day trading on Wednesday, reaching $365.78. The company's stock had a trading volume of 916,565 shares, compared to its average volume of 884,997. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $387.90. The business's 50 day moving average price is $331.76 and its 200 day moving average price is $331.04. The company has a market cap of $50.39 billion, a price-to-earnings ratio of 18.20, a price-to-earnings-growth ratio of 2.04 and a beta of 1.03.

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

Cummins Increases Dividend

The business 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. The ex-dividend date of this dividend is Friday, August 22nd. This is a boost from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 2.19%. Cummins's dividend payout ratio is currently 36.22%.

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.