Cummins Inc. $CMI Shares Sold by Windward Capital Management Co. CA

Key Points

• Windward Capital Management Co. CA has reduced its holdings in Cummins Inc. by 2.4% in the 1st quarter, now owning 54,706 shares valued at $17.1 million, which comprises 1.5% of its portfolio.
• Multiple institutional investors have increased their stakes in Cummins, as hedge funds now own 83.46% of the company's stock, reflecting strong institutional interest.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, representing a yield of 2.0% with a payout ratio of 34.23%.

Windward Capital Management Co. CA lessened its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 2.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 54,706 shares of the company's stock after selling 1,356 shares during the quarter. Cummins comprises approximately 1.5% of Windward Capital Management Co. CA's portfolio, making the stock its 25th biggest position. Windward Capital Management Co. CA's holdings in Cummins were worth $17,147,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Fayez Sarofim & Co raised its position in Cummins by 72.3% during the 4th quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock worth $2,857,000 after buying an additional 3,440 shares during the last quarter. Fox Run Management L.L.C. purchased a new stake in shares of Cummins in the first quarter valued at about $2,749,000. Alpha Cubed Investments LLC acquired a new position in shares of Cummins during the first quarter worth about $440,000. Assenagon Asset Management S.A. raised its holdings in Cummins by 8.9% during the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock worth $4,283,000 after purchasing an additional 1,114 shares in the last quarter. Finally, Invesco Ltd. lifted its position in Cummins by 11.6% in the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after purchasing an additional 126,362 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

CMI has been the topic of several recent analyst reports. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $410.00 to $431.00 in a research report on Tuesday, May 27th. Truist Financial lifted their price target on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research report on Tuesday. Morgan Stanley raised their target price on Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Finally, Citigroup upped their price target on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Seven 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. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $370.83.

Cummins Price Performance

Shares of CMI stock traded down $6.0350 during mid-day trading on Wednesday, reaching $396.1750. The stock had a trading volume of 847,817 shares, compared to its average volume of 884,923. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The company has a market cap of $54.59 billion, a P/E ratio of 18.63, a price-to-earnings-growth ratio of 1.96 and a beta of 1.02. The business has a 50-day simple moving average of $350.54 and a 200 day simple moving average of $333.52. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53.

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, topping the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for 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 business's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $5.26 EPS. On average, sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. Cummins's dividend payout ratio is 34.23%.

Insider Activity

In other news, CFO Mark Andrew Smith sold 6,500 shares of the business's stock in a transaction on Wednesday, August 13th. The stock was 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 directly owned 31,582 shares of the company's stock, valued at $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the sale, the vice president directly owned 20,738 shares in the company, valued at approximately $8,354,925.44. The trade was a 19.43% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 24,179 shares of company stock worth $9,636,871. 0.41% of the stock is 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.