Trust Co. of Vermont Increases Holdings in Cummins Inc. $CMI

Key Points

• Trust Co. of Vermont increased its holdings in Cummins Inc. by 7.9% in the second quarter, bringing its total ownership to 13,460 shares valued at approximately $4.41 million.
• Cummins recently reported $6.43 earnings per share for the last quarter, exceeding analyst expectations, along with revenues of $8.64 billion, which was also above consensus estimates.
• The company announced a quarterly dividend increase from $1.82 to $2.00 per share, with an annualized dividend yield of 1.9% and a payout ratio of 37.61%.

Trust Co. of Vermont grew its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 7.9% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 13,460 shares of the company's stock after buying an additional 986 shares during the quarter. Trust Co. of Vermont's holdings in Cummins were worth $4,408,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. Raymond James Financial Inc. grew its holdings in Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after purchasing an additional 817,384 shares during the last quarter. AQR Capital Management LLC grew its holdings in Cummins by 70.9% during the 1st quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock valued at $314,942,000 after purchasing an additional 424,294 shares during the last quarter. Nuveen LLC bought a new position in Cummins during the 1st quarter valued at about $109,120,000. Vanguard Group Inc. grew its holdings in Cummins by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after purchasing an additional 321,823 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in Cummins by 74.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 749,449 shares of the company's stock valued at $234,907,000 after purchasing an additional 319,277 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Price Performance

NYSE CMI opened at $422.60 on Wednesday. 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 moving average price is $396.86 and its 200-day moving average price is $343.77. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $432.50. The company has a market cap of $58.23 billion, a PE ratio of 19.87, a P/E/G ratio of 2.03 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released 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 firm had revenue of $8.64 billion for 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 company's quarterly revenue was down 1.7% on a year-over-year basis. During the same period last year, the firm earned $5.26 earnings per share. Sell-side analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were issued a $2.00 dividend. 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 of this dividend was Friday, August 22nd. Cummins's dividend payout ratio is 37.61%.

Insiders Place Their Bets

In other Cummins news, Director Karen H. Quintos sold 1,307 shares of the firm's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the transaction, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the firm's 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 transaction, the vice president directly 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 position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 35,119 shares of company stock valued at $14,159,885. Corporate insiders own 0.41% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Robert W. Baird upped 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. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Barclays upped their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Evercore ISI restated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Citigroup upped their target price on shares of Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research note on Tuesday, September 23rd. 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, Cummins has a consensus rating of "Moderate Buy" and an average target price of $393.57.

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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