Southeast Asset Advisors LLC Invests $632,000 in Cummins Inc. $CMI

Key Points

• Southeast Asset Advisors LLC has acquired a new stake in Cummins Inc., purchasing 2,016 shares valued at approximately $632,000.
• Analysts have recently adjusted their ratings and price targets for Cummins, with Goldman Sachs upgrading to a "buy" rating and raising the target price from $410 to $431.
• Cummins has announced a quarterly dividend of $2.00 per share, which marks an increase from the previous dividend of $1.82, reflecting a strong financial position.

Southeast Asset Advisors LLC purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 2,016 shares of the company's stock, valued at approximately $632,000.

Several other institutional investors have also made changes to their positions in CMI. Olde Wealth Management LLC acquired a new position in Cummins in the 1st quarter valued at $30,000. Accredited Wealth Management LLC bought a new position in shares of Cummins in the first quarter worth $31,000. Capital A Wealth Management LLC acquired a new position in Cummins in the fourth quarter valued at about $32,000. Opal Wealth Advisors LLC bought a new stake in Cummins during the first quarter worth about $37,000. Finally, Richardson Financial Services Inc. acquired a new stake in Cummins during the first quarter worth about $39,000. 83.46% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction that occurred 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 sale, the vice president directly owned 20,738 shares of the company's stock, valued at $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 26,039 shares of company stock worth $10,385,075 in the last ninety days. Insiders own 0.41% of the company's stock.

Cummins Stock Performance

NYSE CMI traded up $0.80 during trading hours on Thursday, reaching $402.20. 450,919 shares of the company were exchanged, compared to its average volume of 876,694. The stock has a market capitalization of $55.42 billion, a P/E ratio of 18.91, a P/E/G ratio of 1.93 and a beta of 1.02. The business's 50 day simple moving average is $359.93 and its 200-day simple moving average is $335.12. 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 1 year low of $260.02 and a 1 year high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping 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 firm had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the business earned $5.26 earnings per share. The company's quarterly revenue was down 1.7% on a year-over-year basis. On average, equities research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently disclosed 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. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's dividend payout ratio is presently 37.61%.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Barclays upped their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Truist Financial lifted their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research report on Thursday, August 7th. Finally, The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and increased their target price for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $370.83.

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.