AssuredPartners Investment Advisors LLC has enhanced its holdings in Cummins Inc. (NYSE: CMI) by 33.2% during the second quarter of 2023, according to reports from Holdings Channel. The firm now owns a total of 863 shares of Cummins, valued at approximately $283,000 at the end of the most recent reporting period.
This recent investment reflects a broader trend as several institutional investors and hedge funds have either increased or decreased their stakes in Cummins. For instance, Vanguard Group Inc. raised its stake by 1.9% in the first quarter, owning 17,283,469 shares worth approximately $5.4 billion. This was achieved after acquiring an additional 321,823 shares during the quarter.
Other Institutional Movements
Similarly, Northern Trust Corp increased its holdings in Cummins by 1.2%, bringing its total to 1,905,214 shares, valued at around $597 million. UBS Asset Management also boosted its position, acquiring 8,487 shares to reach a total of 1,634,580 shares, now valued at about $512 million.
Notably, Raymond James Financial Inc. significantly increased its position by 152.3%, now holding 1,354,052 shares valued at approximately $424 million. Meanwhile, Invesco Ltd. raised its stake by 11.6%, owning 1,215,956 shares worth $381 million. Currently, institutional investors own 83.46% of Cummins’ stock.
Stock Performance and Dividend Announcement
As of the latest trading session, Cummins shares were down by 2.6%, opening at $411.84. The company’s fifty-day simple moving average stands at $411.10, while the two-hundred-day average is at $352.75. Cummins has a market capitalization of $56.75 billion and a price-to-earnings ratio of 19.36. The stock has fluctuated between a yearly low of $260.02 and a high of $440.51.
On another note, Cummins has declared a quarterly dividend of $2.00 per share, set to be paid on December 4, 2023. Shareholders of record on November 21, 2023 will receive this dividend, representing an annualized payout of $8.00 and a dividend yield of 1.9%. Cummins’ payout ratio is currently 37.61%.
Insider Trading Activity
In recent insider trades, Karen H. Quintos, a director at Cummins, sold 1,307 shares on August 19, 2023 for an average price of $405.33, totaling approximately $529,766. Following this transaction, she holds 5,227 shares, valued at around $2.12 million. This sale marked a decrease of 20% in her position.
Additionally, Robert Enright, a vice president at the company, sold 1,860 shares on August 22, 2023, at an average price of $402.26, resulting in a total transaction value of approximately $748,204. Following this sale, he owns 955 shares, valued at approximately $384,158, representing a decrease of 66.07% in ownership.
Over the past three months, insiders have sold a total of 43,119 shares worth nearly $17.67 million. Currently, company insiders hold 0.41% of Cummins’ stock.
Analysts’ Price Targets
Analysts have been actively revising their price targets for Cummins. Citigroup raised its price objective from $425.00 to $485.00, assigning a “buy” rating in a report dated September 23, 2023. Similarly, JPMorgan Chase & Co. increased its target from $400.00 to $460.00, maintaining a “neutral” rating.
Research from Weiss Ratings reiterated a “buy” rating, while Evercore ISI labeled the stock as “outperform.” Robert W. Baird adjusted their target price from $315.00 to $355.00, also assigning a “neutral” rating.
According to MarketBeat, Cummins currently enjoys an average rating of “Moderate Buy” with a consensus price target of $407.43. The stock has received one “Strong Buy” rating, ten “Buy” ratings, six “Hold” ratings, and one “Sell” rating.
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines and related components worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera, providing various products for multiple industries, including automotive, construction, mining, and agriculture.
