United Capital Management of KS Inc. Acquires Shares of 1,109 Cummins Inc. (NYSE:CMI)

Key Points

• United Capital Management of KS Inc. purchased a new stake of 1,109 shares in Cummins Inc., valued at approximately $348,000, according to a recent SEC filing.
• Multiple institutional investors, such as Ethic Inc. and Brandywine Global Investment Management LLC, have increased their holdings in Cummins by significant percentages during the first quarter.
• Cummins has raised its quarterly dividend to $2.00, resulting in an annualized dividend of $8.00 and a yield of 2.0%, up from its previous dividend of $1.82.

United Capital Management of KS Inc. purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,109 shares of the company's stock, valued at approximately $348,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Ethic Inc. grew its holdings in Cummins by 10.8% in the 1st quarter. Ethic Inc. now owns 11,615 shares of the company's stock valued at $3,663,000 after buying an additional 1,135 shares in the last quarter. Brandywine Global Investment Management LLC grew its stake in shares of Cummins by 13.5% in the 1st quarter. Brandywine Global Investment Management LLC now owns 94,539 shares of the company's stock valued at $29,632,000 after buying an additional 11,263 shares during the period. Horizon Investments LLC raised its position in shares of Cummins by 5.2% during the 1st quarter. Horizon Investments LLC now owns 1,975 shares of the company's stock valued at $619,000 after buying an additional 98 shares during the period. Fox Run Management L.L.C. purchased a new position in Cummins in the first quarter worth approximately $2,749,000. Finally, Hamlin Capital Management LLC raised its position in Cummins by 1.8% in the first quarter. Hamlin Capital Management LLC now owns 529,613 shares of the company's stock valued at $166,002,000 after purchasing an additional 9,425 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on CMI. Robert W. Baird raised their price objective on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Truist Financial boosted their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Wells Fargo & Company raised Cummins to an "overweight" rating in a research note on Monday. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and lifted their target price for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Finally, Barclays raised their price objective on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Price Performance

Shares of CMI opened at $405.25 on Friday. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The firm's fifty day simple moving average is $346.07 and its 200-day simple moving average is $332.72. The firm has a market capitalization of $55.84 billion, a price-to-earnings ratio of 19.05, a PEG ratio of 1.98 and a beta of 1.02. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The business's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $5.26 EPS. Equities 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 will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's dividend payout ratio is presently 34.23%.

Insider Activity at Cummins

In other Cummins news, CFO Mark Andrew Smith sold 6,500 shares of the company's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the transaction, the chief financial officer owned 31,582 shares in the company, valued at $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction dated 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 completion of the sale, 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 17,870 shares of company stock valued at $7,091,899 over the last ninety days. Insiders own 0.41% of the company's stock.

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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