Windward Capital Management Co. CA Reduces Stock Holdings in Cummins Inc. (NYSE:CMI)

Windward Capital Management Co. CA trimmed its holdings in shares of Cummins Inc. (NYSE:CMI) by 2.4% during the 1st quarter, Holdings Channel reports. The institutional investor owned 54,706 shares of the company’s stock after selling 1,356 shares during the period. Cummins comprises 1.5% of Windward Capital Management Co. CA’s holdings, making the stock its 25th largest holding. Windward Capital Management Co. CA’s holdings in Cummins were worth $17,147,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Capital A Wealth Management LLC purchased a new stake in Cummins during the 4th quarter valued at about $32,000. Olde Wealth Management LLC purchased a new stake in Cummins during the 1st quarter valued at about $30,000. Opal Wealth Advisors LLC purchased a new stake in Cummins during the 1st quarter valued at about $37,000. Richardson Financial Services Inc. purchased a new stake in Cummins during the 1st quarter valued at about $39,000. Finally, Costello Asset Management INC purchased a new stake in Cummins during the 1st quarter valued at about $40,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Cummins news, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the completion of 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Jennifer Mary Bush sold 520 shares of the stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $388.13, for a total value of $201,827.60. Following the transaction, the vice president directly owned 15,130 shares of the company’s stock, valued at $5,872,406.90. The trade was a 3.32% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 22,872 shares of company stock worth $9,107,105. 0.41% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms have weighed in on CMI. JPMorgan Chase & Co. boosted their price target on Cummins from $308.00 to $320.00 and gave the company a “neutral” rating in a research note on Tuesday, May 6th. Barclays boosted their price target on Cummins from $381.00 to $387.00 and gave the company an “equal weight” rating in a research note on Monday, July 21st. Evercore ISI decreased their price objective on Cummins from $451.00 to $419.00 and set an “outperform” rating for the company in a report on Monday, May 19th. The Goldman Sachs Group raised Cummins from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Morgan Stanley boosted their price objective on Cummins from $340.00 to $350.00 and gave the company an “overweight” rating in a report on Tuesday, May 6th. One equities research 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. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $370.83.

Cummins Stock Performance

NYSE CMI opened at $398.45 on Friday. The stock has a market capitalization of $54.90 billion, a price-to-earnings ratio of 18.73, a PEG ratio of 1.95 and a beta of 1.02. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $408.38. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The stock has a 50-day moving average of $347.51 and a 200 day moving average of $332.91.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping analysts’ consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion during the quarter, compared to analysts’ expectations of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%. Cummins’s quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.26 EPS. Sell-side analysts anticipate 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. Investors of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. This is a positive change from Cummins’s previous quarterly dividend of $1.82. Cummins’s payout ratio is currently 34.23%.

Cummins 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.