Stiles Financial Services Inc Purchases 675 Shares of Cummins Inc. $CMI

Key Points

• Stiles Financial Services Inc increased its stake in Cummins Inc. by 13.9%, purchasing an additional 675 shares during the second quarter, valuing its holdings at $1.8 million.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, representing an annualized yield of 1.9%.
• The company's latest earnings report showed $6.43 EPS, beating estimates significantly, while overall revenue decreased by 1.7% year-over-year.

Stiles Financial Services Inc lifted its position in Cummins Inc. (NYSE:CMI - Free Report) by 13.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 5,519 shares of the company's stock after purchasing an additional 675 shares during the quarter. Stiles Financial Services Inc's holdings in Cummins were worth $1,809,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Olde Wealth Management LLC bought a new position in shares of Cummins in the first quarter worth $30,000. Accredited Wealth Management LLC purchased a new position in Cummins in the first quarter worth $31,000. Opal Wealth Advisors LLC purchased a new position in Cummins in the first quarter worth $37,000. Richardson Financial Services Inc. purchased a new position in Cummins in the first quarter worth $39,000. Finally, Costello Asset Management INC purchased a new position in Cummins in the first quarter worth $40,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

NYSE CMI opened at $426.20 on Friday. The company has a 50-day simple moving average of $406.06 and a two-hundred day simple moving average of $348.80. 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 12-month low of $260.02 and a 12-month high of $440.51. The firm has a market cap of $58.73 billion, a price-to-earnings ratio of 20.04, a PEG ratio of 2.11 and a beta of 1.04.

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

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were issued 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 1.9%. The ex-dividend date was Friday, August 22nd. Cummins's dividend payout ratio (DPR) is currently 37.61%.

Analyst Ratings Changes

CMI has been the subject of several research reports. Robert W. Baird upped their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Truist Financial upped their target price on shares of Cummins from $380.00 to $434.00 and gave the stock a "hold" rating in a research report on Wednesday. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, September 3rd. Weiss Ratings reiterated a "buy (b)" rating on shares of Cummins in a research report on Saturday, September 27th. Finally, Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Ten analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $397.43.

Insider Activity at Cummins

In other news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction dated 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 directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Robert Enright sold 1,860 shares of the stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $402.26, for a total transaction of $748,203.60. Following the sale, the vice president owned 955 shares of the company's stock, valued at approximately $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 43,119 shares of company stock valued at $17,674,285 in the last quarter. 0.41% of the stock is currently owned by company insiders.

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.

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