Cummins Inc. $CMI Shares Sold by Stoneridge Investment Partners LLC

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 lessened its position in Cummins Inc. (NYSE:CMI - Free Report) by 55.4% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 838 shares of the company's stock after selling 1,039 shares during the period. Stoneridge Investment Partners LLC's holdings in Cummins were worth $263,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Capital A Wealth Management LLC acquired a new stake in shares of Cummins in the 4th quarter worth $32,000. Olde Wealth Management LLC purchased a new position in shares of Cummins in the 1st quarter valued at about $30,000. Opal Wealth Advisors LLC purchased a new position in shares of Cummins in the 1st quarter valued at about $37,000. Richardson Financial Services Inc. purchased a new position in shares of Cummins in the 1st quarter valued at about $39,000. Finally, Costello Asset Management INC purchased a new position in shares of Cummins in the 1st quarter valued at about $40,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. The Goldman Sachs Group upgraded 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. 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. 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. Finally, Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Seven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $370.83.

Insider Buying and Selling at Cummins

In other news, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director directly owned 5,227 shares in the company, valued at $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a filing 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 dated 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 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 ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 24,179 shares of company stock valued at $9,636,871. Corporate insiders own 0.41% of the company's stock.

Cummins Price Performance

NYSE:CMI traded down $5.17 during mid-day trading on Monday, hitting $397.13. 181,378 shares of the company's stock traded hands, compared to its average volume of 878,907. 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 simple moving average is $355.04 and its 200 day simple moving average is $334.04. 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 $54.72 billion, a PE ratio of 18.69, a price-to-earnings-growth ratio of 1.94 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate 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 net margin of 8.72% and a return on equity of 26.96%. The firm's revenue for the quarter was down 1.7% on a year-over-year basis. During the same period last year, the firm posted $5.26 EPS. Sell-side analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

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

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.