Vontobel Holding Ltd. Reduces Holdings in Cummins Inc. $CMI

Key Points

• Vontobel Holding Ltd. has reduced its holdings in Cummins Inc. by 1.4%, now owning 41,129 shares worth approximately $13.47 million.
• Cummins reported a quarterly EPS of $6.43, exceeding analysts' expectations of $5.21, although its revenue for the quarter decreased by 1.7% year-over-year.
• The company recently increased its quarterly dividend from $1.82 to $2.00, resulting in an annualized dividend yield of 1.9%.

Vontobel Holding Ltd. trimmed its stake in Cummins Inc. (NYSE:CMI - Free Report) by 1.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 41,129 shares of the company's stock after selling 598 shares during the period. Vontobel Holding Ltd.'s holdings in Cummins were worth $13,470,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Olde Wealth Management LLC purchased a new stake in shares of Cummins in the 1st quarter worth about $30,000. Accredited Wealth Management LLC bought a new position in shares of Cummins in the 1st quarter worth about $31,000. Opal Wealth Advisors LLC bought a new position in shares of Cummins in the 1st quarter worth about $37,000. Richardson Financial Services Inc. bought a new position in shares of Cummins in the 1st quarter worth about $39,000. Finally, Costello Asset Management INC bought a new position in shares of Cummins in the 1st quarter worth about $40,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Down 2.3%

NYSE:CMI opened at $426.20 on Friday. The firm has a market cap of $58.73 billion, a P/E ratio of 20.04, a P/E/G ratio of 2.11 and a beta of 1.04. 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 fifty-two week low of $260.02 and a fifty-two week high of $440.51. The firm has a 50-day simple moving average of $406.06 and a two-hundred day simple moving average of $348.80.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same period in the previous year, the business posted $5.26 earnings per share. The business's revenue for the quarter was down 1.7% on a year-over-year basis. Analysts predict that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This is a boost 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 was Friday, August 22nd. Cummins's dividend payout ratio (DPR) is presently 37.61%.

Analyst Upgrades and Downgrades

CMI has been the subject of several research reports. Truist Financial increased their price target on shares of Cummins from $380.00 to $434.00 and gave the stock a "hold" rating in a research note on Wednesday. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a research note on Wednesday, September 3rd. Citigroup increased their price target 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. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Ten equities research analysts have rated the stock with a Buy rating, six have assigned 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 $397.43.

Insider Transactions at Cummins

In other news, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction that occurred 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 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 legal filing with the SEC, which is available through this link. Also, CFO Mark Andrew Smith sold 8,000 shares of Cummins stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $439.30, for a total transaction of $3,514,400.00. Following the completion of the sale, the chief financial officer owned 31,582 shares of the company's stock, valued at $13,873,972.60. This represents a 20.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 43,119 shares of company stock valued at $17,674,285. Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.