Cummins Inc. $CMI Shares Sold by Price T Rowe Associates Inc. MD

Key Points

• Price T Rowe Associates Inc. MD has reduced its stake in Cummins Inc. by 52.4%, now owning approximately 1.83% of the company, worth around $790.4 million.
• Cummins recently announced a quarterly dividend of $2.00 per share, representing a yield of 2.0% and an increase from the previous $1.82 per share.
• Analysts have lifted price targets for Cummins, with Citigroup raising its target to $425.00 and Goldman Sachs upgrading to a "buy" rating, indicating a positive outlook for the stock.

Price T Rowe Associates Inc. MD decreased its position in Cummins Inc. (NYSE:CMI - Free Report) by 52.4% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,521,764 shares of the company's stock after selling 2,776,224 shares during the quarter. Price T Rowe Associates Inc. MD owned 1.83% of Cummins worth $790,423,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in Cummins by 4.1% during the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after buying an additional 83 shares in the last quarter. MML Investors Services LLC lifted its holdings in Cummins by 3.2% during the 4th quarter. MML Investors Services LLC now owns 16,663 shares of the company's stock worth $5,809,000 after buying an additional 509 shares in the last quarter. TD Waterhouse Canada Inc. lifted its holdings in Cummins by 7.2% during the 4th quarter. TD Waterhouse Canada Inc. now owns 4,871 shares of the company's stock worth $1,698,000 after buying an additional 327 shares in the last quarter. MGO One Seven LLC lifted its holdings in Cummins by 192.3% during the 4th quarter. MGO One Seven LLC now owns 6,422 shares of the company's stock worth $2,239,000 after buying an additional 4,225 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. lifted its holdings in Cummins by 50.8% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 5,834 shares of the company's stock worth $2,034,000 after buying an additional 1,965 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Activity

In related news, VP Jennifer Mary Bush sold 520 shares of the company's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $388.13, for a total value of $201,827.60. Following the completion of the sale, the vice president owned 15,130 shares in the company, valued at $5,872,406.90. This represents a 3.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the sale, 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 have sold a total of 24,179 shares of company stock worth $9,636,871 over the last ninety days. 0.41% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on CMI shares. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a report on Monday, August 11th. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Truist Financial lifted their price target on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday, August 7th. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Seven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Stock Up 2.0%

CMI traded up $7.8750 on Friday, reaching $402.0750. The company's stock had a trading volume of 775,198 shares, compared to its average volume of 939,606. The stock has a 50 day moving average of $355.04 and a two-hundred day moving average of $334.04. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $55.40 billion, a price-to-earnings ratio of 18.90, a P/E/G ratio of 1.94 and a beta of 1.02. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $408.38.

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

Cummins Increases Dividend

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

Cummins Company 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.