Insider Selling: Cummins (NYSE:CMI) CFO Sells 8,000 Shares of Stock

Key Points

• Mark Andrew Smith, CFO of Cummins Inc., sold 8,000 shares of the company's stock for approximately $3.5 million, reducing his ownership by 20.21%.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, up from $1.82, reflecting a strong payout ratio of 37.61%.
• Analysts are optimistic about Cummins, with ten rating the stock as a Buy and setting a consensus price target of around $397.43.

Cummins Inc. (NYSE:CMI - Get Free Report) CFO Mark Andrew Smith sold 8,000 shares of Cummins stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $439.30, for a total value of $3,514,400.00. Following the completion of the sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $13,873,972.60. This trade represents a 20.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Mark Andrew Smith also recently made the following trade(s):

• On Tuesday, September 16th, Mark Andrew Smith sold 2,671 shares of Cummins stock. The shares were sold at an average price of $415.00, for a total value of $1,108,465.00.
• On Wednesday, September 17th, Mark Andrew Smith sold 1,580 shares of Cummins stock. The shares were sold at an average price of $419.00, for a total value of $662,020.00.
• On Monday, September 15th, Mark Andrew Smith sold 4,829 shares of Cummins stock. The shares were sold at an average price of $415.06, for a total value of $2,004,324.74.
• On Wednesday, August 13th, Mark Andrew Smith sold 6,500 shares of Cummins stock. The shares were sold at an average price of $405.00, for a total value of $2,632,500.00.
• On Tuesday, August 12th, Mark Andrew Smith sold 6,000 shares of Cummins stock. The shares were sold at an average price of $395.00, for a total value of $2,370,000.00.

Cummins Price Performance

CMI traded up $2.36 during trading on Wednesday, reaching $436.53. 468,821 shares of the stock were exchanged, compared to its average volume of 872,449. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The company has a market capitalization of $60.15 billion, a price-to-earnings ratio of 20.52, a P/E/G ratio of 2.12 and a beta of 1.04. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $440.51. The business's 50 day moving average price is $403.47 and its two-hundred day moving average price is $347.53.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter last 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. As a group, equities research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current 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 issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.8%. This is a positive change 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%.

Institutional Investors Weigh In On Cummins

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Osterweis Capital Management Inc. purchased a new stake in shares of Cummins in the second quarter worth about $31,000. Olde Wealth Management LLC purchased a new stake in shares of Cummins in the first quarter worth about $30,000. Accredited Wealth Management LLC purchased a new stake in shares of Cummins in the first quarter worth about $31,000. Opal Wealth Advisors LLC purchased a new stake in shares of Cummins in the first quarter worth about $37,000. Finally, Richardson Financial Services Inc. purchased a new stake in shares of Cummins in the first quarter worth about $39,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

CMI has been the subject of a number of analyst reports. Citigroup boosted their price target on Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a report on Tuesday, September 23rd. Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. Barclays boosted their price target on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Robert W. Baird boosted their price target on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Finally, Evercore ISI reissued an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Ten investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $397.43.

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.

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