Simmons Bank Reduces Stock Position in Cummins Inc. (NYSE:CMI)

Simmons Bank trimmed its position in Cummins Inc. (NYSE:CMI) by 13.8% in the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 19,950 shares of the company’s stock after selling 3,196 shares during the period. Simmons Bank’s holdings in Cummins were worth $4,779,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Cummins by 13.1% during the third quarter. Vanguard Group Inc. now owns 17,761,317 shares of the company’s stock valued at $4,057,750,000 after buying an additional 2,055,239 shares during the last quarter. Fisher Asset Management LLC increased its stake in Cummins by 4.3% in the 4th quarter. Fisher Asset Management LLC now owns 2,590,894 shares of the company’s stock valued at $620,701,000 after buying an additional 106,017 shares during the period. Morgan Stanley boosted its position in Cummins by 2.7% during the third quarter. Morgan Stanley now owns 1,898,796 shares of the company’s stock valued at $433,799,000 after purchasing an additional 50,476 shares during the last quarter. Northern Trust Corp grew its stake in shares of Cummins by 4.0% in the 3rd quarter. Northern Trust Corp now owns 1,815,729 shares of the company’s stock valued at $414,821,000 after buying an additional 69,830 shares in the last quarter. Finally, Stifel Financial Corp grew its position in Cummins by 0.9% in the third quarter. Stifel Financial Corp now owns 1,599,531 shares of the company’s stock worth $365,430,000 after acquiring an additional 13,634 shares in the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently commented on CMI. Robert W. Baird dropped their price objective on Cummins from $298.00 to $295.00 and set a “neutral” rating on the stock in a research note on Friday, May 3rd. TheStreet cut Cummins from an “a-” rating to a “c+” rating in a report on Tuesday, February 6th. Citigroup raised their price target on Cummins from $265.00 to $285.00 and gave the company a “buy” rating in a report on Monday, February 12th. Truist Financial raised their price target on shares of Cummins from $303.00 to $319.00 and gave the company a “hold” rating in a report on Friday, May 3rd. Finally, UBS Group upgraded shares of Cummins from a “neutral” rating to a “buy” rating and upped their target price for the company from $254.00 to $321.00 in a research report on Friday, March 15th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $282.55.

Insider Activity

In other Cummins news, VP Sharon R. Barner sold 11,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $262.16, for a total transaction of $2,883,760.00. Following the completion of the transaction, the vice president now owns 17,874 shares of the company’s stock, valued at $4,685,847.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, SVP Tony Satterthwaite sold 37,450 shares of Cummins stock in a transaction on Wednesday, February 21st. The shares were sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the transaction, the senior vice president now owns 73,741 shares in the company, valued at approximately $19,545,052.05. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Sharon R. Barner sold 11,000 shares of Cummins stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $262.16, for a total transaction of $2,883,760.00. Following the completion of the sale, the vice president now owns 17,874 shares in the company, valued at $4,685,847.84. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 55,169 shares of company stock valued at $14,689,855. Corporate insiders own 0.56% of the company’s stock.

Cummins Stock Performance

Cummins stock traded up $1.49 during mid-day trading on Wednesday, reaching $288.40. 271,794 shares of the company’s stock were exchanged, compared to its average volume of 2,527,974. The firm has a market capitalization of $39.45 billion, a PE ratio of 21.02, a P/E/G ratio of 1.90 and a beta of 1.04. The business’s fifty day simple moving average is $286.11 and its 200 day simple moving average is $253.84. The company has a quick ratio of 0.84, a current ratio of 1.34 and a debt-to-equity ratio of 0.57. Cummins Inc. has a one year low of $203.18 and a one year high of $304.24.

Cummins (NYSE:CMI) last announced its earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.27). The company had revenue of $8.54 billion during the quarter, compared to analysts’ expectations of $8.10 billion. Cummins had a return on equity of 25.38% and a net margin of 5.70%. The firm’s revenue was up 9.9% on a year-over-year basis. During the same quarter last year, the firm posted $4.52 earnings per share. On average, sell-side analysts expect that Cummins Inc. will post 18.45 earnings per share for the current year.

Cummins Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Friday, February 23rd were issued a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.33%. The ex-dividend date of this dividend was Thursday, February 22nd. Cummins’s dividend payout ratio (DPR) is currently 49.19%.

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.