Woodward Diversified Capital LLC Makes New Investment in Cummins Inc. $CMI

Key Points

• Woodward Diversified Capital LLC has purchased 1,229 shares of Cummins Inc. (NYSE: CMI), valued at approximately $402,000, during the second quarter.
• A total of 83.46% of Cummins' stock is now owned by institutional investors and hedge funds, indicating significant institutional interest in the company.
• Cummins recently increased its quarterly dividend from $1.82 to $2.00, reflecting a commitment to returning value to shareholders.

Woodward Diversified Capital LLC acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,229 shares of the company's stock, valued at approximately $402,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Trilogy Capital Inc. raised its holdings in shares of Cummins by 6.9% in the 2nd quarter. Trilogy Capital Inc. now owns 8,849 shares of the company's stock worth $2,898,000 after acquiring an additional 574 shares during the last quarter. QTR Family Wealth LLC purchased a new stake in shares of Cummins in the second quarter worth approximately $202,000. Trust Co. of Vermont raised its stake in shares of Cummins by 7.9% in the second quarter. Trust Co. of Vermont now owns 13,460 shares of the company's stock worth $4,408,000 after purchasing an additional 986 shares during the last quarter. Rogco LP raised its stake in shares of Cummins by 20.2% in the second quarter. Rogco LP now owns 1,436 shares of the company's stock worth $470,000 after purchasing an additional 241 shares during the last quarter. Finally, PFG Investments LLC raised its stake in shares of Cummins by 9.5% in the second quarter. PFG Investments LLC now owns 2,475 shares of the company's stock worth $811,000 after purchasing an additional 215 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Transactions at Cummins

In related 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 sale, the director directly owned 5,227 shares in the company, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through 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 owned 7,693 shares in the company, valued at $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 35,119 shares of company stock valued at $14,159,885. 0.41% of the stock is currently owned by insiders.

Cummins Stock Performance

NYSE CMI opened at $424.85 on Thursday. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $432.50. The company has a 50-day simple moving average of $398.13 and a 200 day simple moving average of $344.32. 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 company has a market capitalization of $58.54 billion, a PE ratio of 19.97, a price-to-earnings-growth ratio of 2.04 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results 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 net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the business posted $5.26 EPS. Cummins's quarterly revenue was down 1.7% compared to the same quarter last year. On average, research analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

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

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Melius upgraded shares of 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. Truist Financial increased their target price on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Robert W. Baird increased their price objective on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target 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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