Commonwealth Equity Services Cuts Stake in Cummins by 9.9%

Commonwealth Equity Services LLC has reduced its holdings in Cummins Inc. (NYSE: CMI) by 9.9% during the third quarter of 2023, as indicated by its recent Form 13F filing with the Securities and Exchange Commission. Following the sale of 6,201 shares during this period, the firm now holds 56,481 shares valued at approximately $23.86 million.

Other institutional investors have also made adjustments to their positions in Cummins. Brighton Jones LLC increased its stake by 4.1% in the fourth quarter, owning 2,112 shares worth $736,000 after acquiring an additional 83 shares. Caxton Associates LLP and Arete Wealth Advisors LLC entered new positions in Cummins during the first quarter, valued at $431,000 and $350,000 respectively. Additionally, Ascent Group LLC boosted its holdings by an impressive 70.9%, now owning 2,422 shares valued at $759,000. Overall, institutional investors currently own 83.46% of Cummins stock.

Analysts’ Ratings and Insider Activity

Several analysts have recently reassessed their ratings for Cummins shares. Argus raised its target price from $459.00 to $573.00, maintaining a “buy” rating. Citigroup also increased its price objective from $530.00 to $580.00 with a similar recommendation. In total, one analyst has rated Cummins as a Strong Buy, thirteen have assigned a Buy rating, and five have issued a Hold rating. According to MarketBeat.com, the stock holds an average rating of “Moderate Buy” with a consensus price target of $492.75.

In related insider activity, Cummins’ Chief Financial Officer, Mark Andrew Smith, sold 13,110 shares on November 6, 2023, at an average price of $470.66, totaling $6,170,352.60. Following this sale, Smith holds 31,582 shares, valued at approximately $14.86 million. Additionally, CEO Jennifer Rumsey sold 4,570 shares on November 11, 2023, for $2,165,677.30, reducing her ownership by 9.63%.

Current Stock Performance and Future Outlook

On the trading front, shares of Cummins opened at $544.95 on November 10, 2023. The company boasts a market capitalization of $75.22 billion and a price-to-earnings ratio of 28.28. Over the past year, Cummins has experienced a low of $260.02 and a high of $547.43.

Cummins’ latest quarterly earnings, announced on November 6, revealed earnings per share of $5.59, surpassing analyst estimates of $4.83 by $0.76. The firm reported revenue of $8.32 billion, exceeding expectations of $7.97 billion, although revenue saw a 1.6% decline compared to the previous year.

In addition to its earnings, Cummins declared a quarterly dividend of $2.00 per share, paid on December 4, 2023. This dividend reflects an annualized rate of $8.00 and a yield of 1.5%. The company has a current payout ratio of 41.52%.

Cummins Inc., founded in 1919 and headquartered in Columbus, Indiana, is a leading global power technology company. It designs and manufactures a wide range of diesel and natural gas engines, power generation systems, and components aimed at reducing emissions and improving fuel efficiency.

Investors can stay updated on Cummins and other hedge fund activities by visiting platforms like HoldingsChannel.com for the latest 13F filings and insider trades.