Insider Selling: Cummins Inc. (NYSE:CMI) CFO Sells 6,500 Shares of Stock

Key Points

• Cummins Inc. CFO Mark Andrew Smith sold 6,500 shares of the company's stock for a total of $2,632,500, decreasing his ownership by 17.07%.
• The company reported strong quarterly earnings of $6.43 per share, exceeding analysts' expectations, despite a slight revenue decline of 1.7% year-over-year.
• Cummins has announced an increase in its quarterly dividend from $1.82 to $2.00, scheduled for distribution on September 4th, representing an annual yield of 2.0%.

Cummins Inc. (NYSE:CMI - Get Free Report) CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the transaction, the chief financial officer owned 31,582 shares of the company's stock, valued at $12,790,710. This represents a 17.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

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

• 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 value of $2,370,000.00.

Cummins Stock Down 1.6%

Cummins stock traded down $6.35 during midday trading on Friday, reaching $398.45. The stock had a trading volume of 701,253 shares, compared to its average volume of 1,050,250. The firm's fifty day simple moving average is $347.51 and its 200-day simple moving average is $332.91. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $408.38. The stock has a market capitalization of $54.90 billion, a P/E ratio of 18.73, a price-to-earnings-growth ratio of 1.95 and a beta of 1.02. 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 announced its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the firm earned $5.26 EPS. Cummins's revenue for the quarter was down 1.7% compared to the same quarter last year. As a group, analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. 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%. Cummins's payout ratio is presently 34.23%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on CMI. Citigroup lifted 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. Truist Financial raised their target price on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. Wells Fargo & Company upgraded Cummins to an "overweight" rating in a report on Monday, August 11th. Morgan Stanley raised their target price on Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a report on Tuesday, May 6th. Finally, Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $370.83.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Capital A Wealth Management LLC acquired a new position in shares of Cummins during the 4th quarter worth approximately $32,000. Osterweis Capital Management Inc. bought a new stake in Cummins in the 2nd quarter valued at $31,000. Olde Wealth Management LLC bought a new stake in Cummins in the 1st quarter valued at $30,000. Accredited Wealth Management LLC bought a new stake in Cummins in the 1st quarter valued at $31,000. Finally, Opal Wealth Advisors LLC bought a new stake in Cummins in the 1st quarter valued at $37,000. Institutional investors and hedge funds own 83.46% of the company's stock.

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.