Legacy Trust Lowers Stake in Cummins Inc. $CMI

Legacy Trust lowered its stake in shares of Cummins Inc. (NYSE:CMI) by 8.9% in the second quarter, according to its most recent 13F filing with the SEC. The firm owned 18,034 shares of the company’s stock after selling 1,764 shares during the period. Cummins makes up approximately 1.4% of Legacy Trust’s investment portfolio, making the stock its 26th largest position. Legacy Trust’s holdings in Cummins were worth $5,906,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in CMI. Raymond James Financial Inc. boosted its position in shares of Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company’s stock worth $424,414,000 after purchasing an additional 817,384 shares during the period. AQR Capital Management LLC lifted its holdings in Cummins by 70.9% during the 1st quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company’s stock worth $314,942,000 after buying an additional 424,294 shares in the last quarter. Nuveen LLC acquired a new stake in Cummins during the 1st quarter worth approximately $109,120,000. Vanguard Group Inc. lifted its holdings in Cummins by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company’s stock worth $5,417,331,000 after buying an additional 321,823 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in Cummins by 74.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 749,449 shares of the company’s stock worth $234,907,000 after buying an additional 319,277 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Insider Activity

In related news, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the sale, the vice president directly owned 20,738 shares in the company, valued at $8,354,925.44. This trade represents a 19.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president owned 7,693 shares in the company, valued at $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 35,119 shares of company stock worth $14,159,885 over the last three months. Company insiders own 0.41% of the company’s stock.

Cummins Price Performance

Shares of CMI opened at $432.87 on Friday. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $437.66. The firm’s fifty day simple moving average is $400.74 and its 200-day simple moving average is $345.95. The firm has a market capitalization of $59.65 billion, a price-to-earnings ratio of 20.35, a PEG ratio of 2.09 and a beta of 1.04. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping 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 for the quarter, compared to analyst estimates of $8.45 billion. During the same period last year, the business earned $5.26 EPS. Cummins’s revenue for the quarter was down 1.7% compared to the same quarter last year. Equities analysts forecast 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 was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. The ex-dividend date was Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 1.8%. This is an increase from Cummins’s previous quarterly dividend of $1.82. Cummins’s dividend payout ratio (DPR) is 37.61%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on CMI shares. Robert W. Baird increased their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a “neutral” rating in a report on Friday, July 11th. Truist Financial increased their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a “hold” rating in a report on Thursday, August 7th. Wolfe Research upgraded shares of Cummins from a “hold” rating to an “outperform” rating in a report on Monday, August 11th. Barclays increased their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an “equal weight” rating in a report on Monday, July 21st. Finally, Melius Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price objective on the stock in a report on Wednesday, September 3rd. Ten equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $393.57.

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.