Avantax Advisory Services Inc. has increased its investment in Cummins Inc. (NYSE: CMI) by 6.7% during the second quarter of 2023. According to a recent disclosure filed with the Securities and Exchange Commission, Avantax acquired an additional 580 shares, bringing its total holdings to 9,291 shares valued at approximately $3,043,000.
This move reflects a broader trend among institutional investors, with several hedge funds actively buying and selling shares of Cummins. Notably, Raymond James Financial Inc. significantly increased its stake by 152.3% in the first quarter, now owning 1,354,052 shares worth around $424.4 million after purchasing an additional 817,384 shares. AQR Capital Management LLC also expanded its position by 70.9%, acquiring 424,294 shares valued at $314.9 million.
Insider Transactions and Stock Performance
Recent insider trading activity has seen notable sales from Cummins executives. As of November 11, 2023, CEO Jennifer Rumsey sold 4,570 shares at an average price of $473.89, totaling approximately $2.17 million. Following this transaction, Rumsey retained 42,880 shares valued at about $20.32 million, marking a 9.63% decrease in her holdings.
Similarly, CFO Mark Andrew Smith sold 13,110 shares on November 6, 2023, for around $6.17 million, which reduced his position by 29.33%. Over the past ninety days, insiders have sold a total of 34,960 shares amounting to approximately $15.72 million. Currently, insiders hold 0.41% of Cummins’ stock.
Cummins’ stock experienced a 1.6% decline recently, closing at $473.89 following the company’s quarterly earnings report. For the third quarter of 2023, Cummins reported earnings per share (EPS) of $5.59, exceeding analyst expectations of $4.83. The company’s revenue reached $8.32 billion, surpassing estimates of $7.97 billion, despite a 1.6% year-over-year decline in revenue.
Future Outlook and Dividends
Looking ahead, Cummins has declared a quarterly dividend of $2.00 per share, scheduled for payment on December 4, 2023, to investors of record as of November 21, 2023. This dividend translates to an annualized value of $8.00 and a yield of 1.7%, with a payout ratio of 41.52%.
Analysts remain optimistic about Cummins’ future performance. Recent ratings indicate a consensus of ten analysts recommending a “buy” rating, while seven advise holding the stock. MarketBeat reports an average price target of $445.93 for Cummins shares, reflecting a “Moderate Buy” rating from the investment community.
Cummins Inc. specializes in designing, manufacturing, and servicing diesel and natural gas engines, electric and hybrid powertrains, and related components globally. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera, serving a diverse range of markets including transportation, construction, agriculture, and more.
For further updates on Cummins and its stakeholders, investors can access detailed reports and analyses through financial news platforms and investor relations websites.
