Pensionfund Sabic Cuts Stock Holdings in Cummins Inc. $CMI

Key Points

• Pensionfund Sabic reduced its holdings in Cummins Inc. by 17.0%, now owning 3,900 shares valued at $1.22 million.
• Cummins reported $6.43 EPS for the last quarter, exceeding analysts' expectations of $5.21 EPS, and had quarterly revenue of $8.64 billion.
• The company recently announced a quarterly dividend of $2.00 per share, increasing its annual dividend yield to 1.9% from the previous quarter.

Pensionfund Sabic lowered its position in Cummins Inc. (NYSE:CMI - Free Report) by 17.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 3,900 shares of the company's stock after selling 800 shares during the quarter. Pensionfund Sabic's holdings in Cummins were worth $1,222,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in CMI. Olde Wealth Management LLC purchased a new stake in shares of Cummins in the first quarter valued at $30,000. Accredited Wealth Management LLC purchased a new stake in shares of Cummins in the first quarter valued at $31,000. Capital A Wealth Management LLC purchased a new stake in shares of Cummins in the fourth quarter valued at $32,000. Opal Wealth Advisors LLC purchased a new stake in shares of Cummins in the first quarter valued at $37,000. Finally, Richardson Financial Services Inc. purchased a new stake in shares of Cummins in the first quarter valued at $39,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Down 1.2%

Shares of NYSE:CMI traded down $5.15 during trading on Friday, reaching $421.24. The stock had a trading volume of 231,266 shares, compared to its average volume of 868,374. The firm's 50-day simple moving average is $384.90 and its 200 day simple moving average is $338.94. The company has a market capitalization of $58.04 billion, a P/E ratio of 19.81, a PEG ratio of 1.99 and a beta of 1.02. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. Cummins Inc. has a one year low of $260.02 and a one year high of $428.96.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations 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 business earned $5.26 EPS. As a group, research analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 37.61%.

Wall Street Analyst Weigh In

Several research analysts recently commented on CMI shares. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and raised their price target for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Finally, Robert W. Baird raised their price target on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Insider Activity at Cummins

In other Cummins news, CFO Mark Andrew Smith sold 6,500 shares of the firm's stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The stock was 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 of the company's stock, valued at $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 35,119 shares of company stock worth $14,159,885 in the last ninety days. 0.41% of the stock is owned by company 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.