Russell Investments Group Ltd. Sells 5,615 Shares of Cummins Inc. (NYSE:CMI)

Key Points

• Russell Investments Group Ltd. has reduced its holdings in Cummins Inc. by 2.5%, now owning 218,312 shares valued at about $68.43 million.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, representing an annualized yield of 2.0%.
• The company's quarterly earnings report showed an EPS of $6.43, surpassing expectations, although revenue decreased by 1.7% year-over-year.

Russell Investments Group Ltd. trimmed its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 2.5% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 218,312 shares of the company's stock after selling 5,615 shares during the period. Russell Investments Group Ltd. owned 0.16% of Cummins worth $68,431,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Fayez Sarofim & Co boosted its holdings in shares of Cummins by 72.3% during the 4th quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock worth $2,857,000 after buying an additional 3,440 shares during the period. Alpha Cubed Investments LLC bought a new stake in shares of Cummins during the 1st quarter worth $440,000. Assenagon Asset Management S.A. boosted its holdings in shares of Cummins by 8.9% during the 1st quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock worth $4,283,000 after buying an additional 1,114 shares during the period. Artemis Investment Management LLP boosted its holdings in shares of Cummins by 19.1% during the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock worth $2,428,000 after buying an additional 1,241 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Cummins by 11.6% during the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after buying an additional 126,362 shares during the period. 83.46% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on CMI shares. Robert W. Baird increased their price target on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Morgan Stanley increased their price target on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Citigroup increased their price target on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and increased their price target for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Truist Financial increased their price target on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $370.83.

Cummins Price Performance

Shares of CMI stock traded down $6.35 during mid-day trading on Friday, reaching $398.45. The company's stock had a trading volume of 701,253 shares, compared to its average volume of 1,050,250. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38. The company has a market cap of $54.90 billion, a P/E ratio of 17.25, a PEG ratio of 1.95 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The firm's 50-day moving average is $347.51 and its two-hundred day moving average is $333.05.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data 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. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the prior year, the company posted $5.26 EPS. The business's revenue was down 1.7% on a year-over-year basis. On average, research analysts predict that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors 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. The ex-dividend date is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. Cummins's dividend payout ratio is 34.23%.

Insider Activity

In related news, CFO Mark Andrew Smith sold 6,500 shares of the 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 completion of the sale, the chief financial officer owned 31,582 shares in the company, valued at $12,790,710. This trade represents a 17.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Jennifer Mary Bush sold 520 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the sale, the vice president owned 15,130 shares of the company's stock, valued at $5,872,406.90. This trade represents a 3.32% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 22,872 shares of company stock worth $9,107,105. Company insiders own 0.41% of the company's stock.

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.