Cummins (NYSE:CMI) CFO Sells $2,004,324.74 in Stock

Key Points

• CFO Mark Andrew Smith sold a total of 4,829 shares of Cummins stock, valued at over $2 million, representing a 13.26% decrease in his ownership of the stock.
• Cummins recently reported an earnings per share (EPS) of $6.43 for the last quarter, significantly above analysts' expectations of $5.21, but saw a 1.7% decrease in revenue compared to the previous year.
• The company declared a quarterly dividend of $2.00 per share, which indicates a positive increase from the prior quarterly dividend of $1.82, and provides a 1.9% dividend yield.

Cummins Inc. (NYSE:CMI - Get Free Report) CFO Mark Andrew Smith sold 4,829 shares of the company's stock in a transaction on Monday, September 15th. The shares were sold at an average price of $415.06, for a total transaction of $2,004,324.74. Following the completion of the transaction, the chief financial officer owned 31,582 shares of the company's stock, valued at approximately $13,108,424.92. The trade was a 13.26% decrease in their position. The sale was disclosed in a filing with the SEC, 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 transaction of $1,108,465.00.
• On Wednesday, September 17th, Mark Andrew Smith sold 1,580 shares of Cummins stock. The stock was sold at an average price of $419.00, for a total transaction of $662,020.00.
• On Wednesday, August 13th, Mark Andrew Smith sold 6,500 shares of Cummins stock. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00.
• On Tuesday, August 12th, Mark Andrew Smith sold 6,000 shares of Cummins stock. The stock was sold at an average price of $395.00, for a total transaction of $2,370,000.00.

Cummins Price Performance

NYSE:CMI traded down $2.80 during mid-day trading on Friday, hitting $423.59. 1,594,141 shares of the company's stock traded hands, compared to its average volume of 734,338. 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 firm's 50 day simple moving average is $386.60 and its 200 day simple moving average is $339.46. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $428.96. The company has a market cap of $58.37 billion, a PE ratio of 19.91, a price-to-earnings-growth ratio of 2.06 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating 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 firm had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same period last year, the firm posted $5.26 EPS. The firm's revenue for the quarter was down 1.7% on a year-over-year basis. Sell-side analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 1.9%. 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 dividend payout ratio is presently 37.61%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in shares of Cummins by 2.0% during the second quarter. Vanguard Group Inc. now owns 17,628,149 shares of the company's stock worth $5,773,219,000 after purchasing an additional 344,680 shares during the last quarter. State Street Corp boosted its holdings in Cummins by 1.4% during the second quarter. State Street Corp now owns 6,539,191 shares of the company's stock worth $2,141,585,000 after buying an additional 92,073 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Cummins by 1.3% during the second quarter. Geode Capital Management LLC now owns 3,499,240 shares of the company's stock worth $1,141,138,000 after purchasing an additional 43,720 shares during the period. Fisher Asset Management LLC raised its position in shares of Cummins by 4.5% during the second quarter. Fisher Asset Management LLC now owns 3,275,045 shares of the company's stock worth $1,072,578,000 after purchasing an additional 142,058 shares during the period. Finally, Northern Trust Corp raised its position in shares of Cummins by 1.2% during the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after purchasing an additional 22,202 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. The Goldman Sachs Group upgraded shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Robert W. Baird lifted their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Finally, Citigroup boosted their price objective on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $389.29.

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.