Parnassus Investments LLC Has $110.01 Million Stock Position in Cummins Inc. $CMI

Key Points

• Parnassus Investments LLC reduced its stake in Cummins Inc. by 7.7%, holding 350,969 shares worth approximately $110 million after selling 29,149 shares in the first quarter.
• Multiple investment firms, including Wells Fargo and Goldman Sachs, have recently upgraded their ratings and price targets for Cummins, indicating positive market sentiment around the company's stock.
• Cummins announced a quarterly dividend increase from $1.82 to $2.00 per share, reflecting an annualized dividend of $8.00, marking a yield of 2.0% and underscoring the company's commitment to returning value to shareholders.

Parnassus Investments LLC trimmed its stake in Cummins Inc. (NYSE:CMI - Free Report) by 7.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 350,969 shares of the company's stock after selling 29,149 shares during the period. Parnassus Investments LLC owned about 0.25% of Cummins worth $110,008,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in CMI. GAMMA Investing LLC lifted its holdings in shares of Cummins by 38,220.5% during the 1st quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company's stock worth $373,428,000 after acquiring an additional 1,188,276 shares during the period. Raymond James Financial Inc. grew its stake in shares of Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after purchasing an additional 817,384 shares during the period. Nuveen LLC acquired a new stake in Cummins in the 1st quarter valued at $109,120,000. Vanguard Group Inc. raised its stake in Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after acquiring an additional 321,823 shares in the last quarter. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of Cummins by 5,553.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 134,052 shares of the company's stock valued at $46,731,000 after acquiring an additional 131,681 shares during the period. Institutional investors own 83.46% of the company's stock.

Insider Buying and Selling at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction dated 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 approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock worth $10,385,075 in the last quarter. Company insiders own 0.41% of the company's stock.

Cummins Trading Down 1.0%

CMI stock traded down $3.82 during midday trading on Tuesday, reaching $394.62. The company's stock had a trading volume of 407,923 shares, compared to its average volume of 871,703. The business's 50-day simple moving average is $364.99 and its 200-day simple moving average is $335.23. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. The stock has a market cap of $54.37 billion, a PE ratio of 18.55, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. During the same period last year, the company posted $5.26 EPS. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

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

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on CMI. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price target for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. JPMorgan Chase & Co. increased their price target on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 6th. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Truist Financial raised their target price 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 increased their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Seven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $370.83.

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.