Temasek Holdings Private Ltd Has $8.58 Million Stake in Cummins Inc. $CMI

Key Points

• Temasek Holdings Private Ltd has reduced its stake in Cummins Inc. by 14.5%, now holding shares valued at approximately $8.58 million.
• Insiders have recently sold a significant number of shares, with vice presidents selling over 26,000 shares totaling around $10.4 million.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00, indicating a strong financial outlook with a payout ratio of 37.61%.

Temasek Holdings Private Ltd reduced its stake in Cummins Inc. (NYSE:CMI - Free Report) by 14.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 27,359 shares of the company's stock after selling 4,651 shares during the period. Temasek Holdings Private Ltd's holdings in Cummins were worth $8,575,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Capital A Wealth Management LLC acquired a new position in shares of Cummins in the fourth quarter valued at $32,000. Olde Wealth Management LLC bought a new stake in shares of Cummins in the first quarter valued at about $30,000. Accredited Wealth Management LLC bought a new stake in shares of Cummins in the first quarter valued at about $31,000. Opal Wealth Advisors LLC bought a new stake in shares of Cummins in the first quarter valued at about $37,000. Finally, Richardson Financial Services Inc. bought a new stake in shares of Cummins in the first quarter valued at about $39,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on CMI shares. Evercore ISI reissued an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research note on Wednesday, September 3rd. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Barclays boosted their price objective on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Finally, Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Nine equities research 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. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $389.29.

Cummins Trading Up 2.6%

NYSE CMI traded up $10.11 during trading hours on Wednesday, reaching $404.89. The company's stock had a trading volume of 846,300 shares, compared to its average volume of 868,666. The firm has a fifty day simple moving average of $373.56 and a 200-day simple moving average of $336.29. The stock has a market cap of $55.79 billion, a P/E ratio of 19.04, a P/E/G ratio of 1.92 and a beta of 1.02. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins (NYSE:CMI - Get Free Report) last issued 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. The business had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the business earned $5.26 EPS. Equities analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a $2.00 dividend. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. Cummins's dividend payout ratio (DPR) is 37.61%.

Insiders Place Their Bets

In other Cummins news, VP Robert Enright sold 1,860 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the completion of 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the stock in a transaction that occurred on 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 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 position. The disclosure for this sale can be found here. Insiders have sold 26,039 shares of company stock worth $10,385,075 over the last quarter. 0.41% of the stock is currently owned by corporate 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.