Insider Selling: Cummins (NYSE:CMI) Director Sells 1,307 Shares of Stock

Key Points

• Karen Quintos, a director at Cummins, sold 1,307 shares at an average price of $405.33, totaling approximately $529,766, which represents a 20% decrease in her holding.
• Cummins reported a quarterly EPS of $6.43, surpassing estimates and revealing a 1.7% year-over-year revenue decline to $8.64 billion.
• The company raised its quarterly dividend to $2.00 per share, yielding 2.0%, up from the previous dividend of $1.82.

Cummins Inc. (NYSE:CMI - Get Free Report) Director Karen Quintos sold 1,307 shares of the company'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 owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Cummins Stock Down 1.0%

Shares of CMI traded down $4.0950 during trading hours on Wednesday, hitting $398.1150. 163,738 shares of the company were exchanged, compared to its average volume of 880,417. The company has a market cap of $54.86 billion, a PE ratio of 18.70, a PEG ratio of 1.96 and a beta of 1.02. The firm's 50 day moving average is $350.54 and its 200-day moving average is $333.52. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $408.38. 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 (NYSE:CMI - Get Free Report) last released 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. The company had revenue of $8.64 billion during 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 firm's revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.26 EPS. On average, equities research analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

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

Hedge Funds Weigh In On Cummins

A number of hedge funds have recently modified their holdings of CMI. BNP Paribas grew its holdings in Cummins by 1.8% during the second quarter. BNP Paribas now owns 1,422 shares of the company's stock worth $466,000 after purchasing an additional 25 shares during the period. Fiduciary Trust Co grew its holdings in Cummins by 1.2% during the fourth quarter. Fiduciary Trust Co now owns 2,456 shares of the company's stock worth $856,000 after purchasing an additional 28 shares during the period. Orca Wealth Management LLC grew its holdings in Cummins by 0.6% during the second quarter. Orca Wealth Management LLC now owns 4,609 shares of the company's stock worth $1,509,000 after purchasing an additional 28 shares during the period. V Square Quantitative Management LLC grew its holdings in Cummins by 1.0% during the second quarter. V Square Quantitative Management LLC now owns 3,285 shares of the company's stock worth $1,076,000 after purchasing an additional 31 shares during the period. Finally, Empirical Finance LLC grew its holdings in Cummins by 0.7% during the second quarter. Empirical Finance LLC now owns 4,919 shares of the company's stock worth $1,611,000 after purchasing an additional 32 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on CMI shares. Morgan Stanley boosted their price objective on Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. Barclays boosted their price objective on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Wells Fargo & Company raised Cummins to an "overweight" rating in a research report on Monday, August 11th. Citigroup boosted their price objective on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday. Seven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $370.83.

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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