Stoneridge Investment Partners LLC Sells 1,039 Shares of Cummins Inc. $CMI

Key Points

• Stoneridge Investment Partners LLC significantly reduced its stake in Cummins Inc. by 55.4%, selling 1,039 shares in the first quarter, lowering its total holding to 838 shares valued at approximately $263,000.
• Analysts have adjusted their ratings on Cummins, with a consensus target price of $370.83 and several upgrades, including a rise from JPMorgan Chase & Co. to $320.00 and from Goldman Sachs from $410.00 to $431.00.
• Cummins also announced an increase in its quarterly dividend from $1.82 to $2.00, reflecting a 2.0% yield and a payout ratio of 34.23%.

Stoneridge Investment Partners LLC cut its position in Cummins Inc. (NYSE:CMI - Free Report) by 55.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 838 shares of the company's stock after selling 1,039 shares during the quarter. Stoneridge Investment Partners LLC's holdings in Cummins were worth $263,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in the stock. Fiduciary Trust Co lifted its holdings in Cummins by 1.2% during the fourth quarter. Fiduciary Trust Co now owns 2,456 shares of the company's stock worth $856,000 after acquiring an additional 28 shares during the period. Bank of Jackson Hole Trust lifted its holdings in Cummins by 1.2% during the first quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock worth $887,000 after acquiring an additional 33 shares during the period. Scotia Capital Inc. lifted its holdings in Cummins by 0.5% during the first quarter. Scotia Capital Inc. now owns 6,714 shares of the company's stock worth $2,104,000 after acquiring an additional 34 shares during the period. Ascent Group LLC lifted its holdings in Cummins by 2.7% during the fourth quarter. Ascent Group LLC now owns 1,417 shares of the company's stock worth $494,000 after acquiring an additional 37 shares during the period. Finally, Central Pacific Bank Trust Division raised its stake in shares of Cummins by 5.0% in the first quarter. Central Pacific Bank Trust Division now owns 815 shares of the company's stock valued at $255,000 after buying an additional 39 shares during the period. 83.46% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have issued reports on the company. JPMorgan Chase & Co. boosted their target price on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Evercore ISI restated an "outperform" rating on shares of Cummins in a research note on Tuesday. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a research note on Monday, August 11th. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Finally, Morgan Stanley lifted their price target on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Seven 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's stock. According to MarketBeat.com, Cummins has a consensus rating of "Hold" and a consensus price target of $370.83.

Cummins Price Performance

Cummins stock opened at $402.18 on Wednesday. The business has a 50-day simple moving average of $350.54 and a 200 day simple moving average of $333.52. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. 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 stock has a market cap of $55.42 billion, a price-to-earnings ratio of 18.91, a PEG ratio of 1.96 and a beta of 1.02.

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

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio (DPR) is currently 34.23%.

Insider Transactions at Cummins

In other news, VP Jennifer Mary Bush sold 520 shares of the business's stock in a transaction dated Friday, August 8th. The stock was 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 of the company's stock, valued at approximately $5,872,406.90. The trade was a 3.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. The trade was a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,872 shares of company stock valued at $9,107,105 over the last quarter. 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.

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