Insider Selling: Cummins Inc. (NYSE:CMI) VP Sells 4,850 Shares of Stock

Key Points

• Luther E. Peters, VP of Cummins Inc., sold 4,850 shares of stock for approximately $1.89 million, decreasing his ownership by 38.67% to 7,693 shares.
• Cummins reported $6.43 EPS for the last quarter, exceeding analysts' estimates and boasting a revenue of $8.64 billion, though down 1.7% year-over-year.
• The company has increased its quarterly dividend to $2.00 per share, resulting in an annual yield of 2.0%, up from the previous $1.82 dividend.

Cummins Inc. (NYSE:CMI - Get Free Report) VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares in the company, valued at $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Cummins Stock Performance

CMI traded up $10.00 during trading on Tuesday, hitting $398.31. The company's stock had a trading volume of 774,611 shares, compared to its average volume of 1,067,398. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins Inc. has a one year low of $260.02 and a one year high of $399.09. The firm has a market cap of $54.88 billion, a PE ratio of 18.73, a P/E/G ratio of 1.89 and a beta of 1.02. The business's 50 day simple moving average is $341.28 and its 200-day simple moving average is $331.35.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping 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 company's revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.26 EPS. As a group, sell-side analysts predict that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be paid 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 is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is 37.61%.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. JPMorgan Chase & Co. upped their price objective on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday. Evercore ISI decreased their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Robert W. Baird upped their price target 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. Finally, Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research note on Monday. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $370.83.

Institutional Investors Weigh In On Cummins

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Olde Wealth Management LLC acquired a new stake in 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 $31,000. Capital A Wealth Management LLC acquired a new stake in shares of Cummins in the fourth quarter valued at $32,000. Opal Wealth Advisors LLC acquired a new position in Cummins during the 1st quarter worth $37,000. Finally, Richardson Financial Services Inc. acquired a new position in shares of Cummins during the 1st quarter worth about $39,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

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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