United Services Automobile Association Takes Position in Cummins Inc. $CMI

Key Points

• United Services Automobile Association acquired a new stake in Cummins Inc., purchasing 3,257 shares valued at approximately $1,023,000, indicating continued institutional interest in the company.
• Insiders at Cummins sold a significant number of shares recently, with the vice president selling 1,860 shares and the CFO selling 6,500 shares, leading to a notable decrease in their ownership percentages.
• Cummins has announced an increase in its quarterly dividend to $2.00 per share, up from the previous $1.82, reflecting a strong commitment to returning value to shareholders.

United Services Automobile Association acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 3,257 shares of the company's stock, valued at approximately $1,023,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Capital A Wealth Management LLC acquired a new stake in shares of Cummins in the fourth quarter valued at approximately $32,000. Olde Wealth Management LLC acquired a new stake in shares of Cummins in the first quarter valued at approximately $30,000. Accredited Wealth Management LLC acquired a new stake in shares of Cummins in the first quarter valued at approximately $31,000. Opal Wealth Advisors LLC acquired a new stake in shares of Cummins in the first quarter valued at approximately $37,000. Finally, Richardson Financial Services Inc. acquired a new stake in shares of Cummins in the first quarter valued at approximately $39,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Cummins

In other Cummins news, Director Karen H. Quintos sold 1,307 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the transaction, the director directly owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark Andrew Smith sold 6,500 shares of the business's stock in a transaction dated 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 sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock valued at $10,385,075 over the last quarter. 0.41% of the stock is owned by corporate insiders.

Cummins Trading Up 1.5%

Shares of NYSE:CMI traded up $6.23 during trading on Thursday, reaching $411.50. 875,542 shares of the stock were exchanged, compared to its average volume of 671,554. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $413.66. The firm has a market cap of $56.70 billion, a price-to-earnings ratio of 19.35, a price-to-earnings-growth ratio of 1.96 and a beta of 1.02. The firm's 50-day moving average price is $376.59 and its 200 day moving average price is $337.12.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping the consensus estimate 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 the consensus estimate of $8.45 billion. During the same period in the prior year, the business earned $5.26 EPS. The business's revenue for the quarter was down 1.7% on a year-over-year basis. On average, sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. Cummins's payout ratio is presently 37.61%.

Analyst Ratings Changes

Several brokerages recently weighed in on CMI. Citigroup increased their price target on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Truist Financial raised their target price on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a report on Wednesday, September 3rd. Finally, The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and raised their target price for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Nine equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $389.29.

Cummins Company 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.