OLD Second National Bank of Aurora Reduces Stock Position in Cummins Inc. (NYSE:CMI)

OLD Second National Bank of Aurora cut its stake in Cummins Inc. (NYSE:CMI) by 2.2% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 18,138 shares of the company’s stock after selling 416 shares during the period. Cummins makes up about 1.2% of OLD Second National Bank of Aurora’s holdings, making the stock its 24th largest holding. OLD Second National Bank of Aurora’s holdings in Cummins were worth $4,345,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also recently added to or reduced their stakes in CMI. OFI Invest Asset Management acquired a new position in Cummins in the third quarter valued at approximately $25,000. Silver Oak Securities Incorporated acquired a new position in Cummins in the third quarter valued at approximately $28,000. Global Wealth Strategies & Associates acquired a new position in Cummins in the third quarter valued at approximately $29,000. Tyler Stone Wealth Management acquired a new position in Cummins during the second quarter worth $30,000. Finally, Quarry LP acquired a new position in Cummins during the first quarter worth $32,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have commented on CMI. Bank of America cut Cummins from a “neutral” rating to an “underperform” rating and decreased their price target for the stock from $243.00 to $225.00 in a research note on Friday, January 19th. JPMorgan Chase & Co. increased their price objective on Cummins from $245.00 to $275.00 and gave the company an “underweight” rating in a research note on Monday, March 25th. UBS Group upgraded Cummins from a “neutral” rating to a “buy” rating and increased their price objective for the company from $254.00 to $321.00 in a research note on Friday, March 15th. TD Cowen increased their price objective on Cummins from $260.00 to $272.00 and gave the company an “outperform” rating in a research note on Wednesday, February 7th. Finally, Truist Financial assumed coverage on Cummins in a report on Thursday, March 14th. They issued a “hold” rating and a $303.00 target price on the stock. Two analysts have rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $279.70.

Cummins Price Performance

Shares of CMI stock traded up $2.30 during midday trading on Thursday, reaching $293.66. 84,121 shares of the company traded hands, compared to its average volume of 2,808,854. The firm’s 50 day simple moving average is $278.71 and its two-hundred day simple moving average is $247.63. Cummins Inc. has a 1-year low of $203.18 and a 1-year high of $304.24. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.18 and a quick ratio of 0.74. The firm has a market cap of $40.16 billion, a PE ratio of 56.25, a price-to-earnings-growth ratio of 2.01 and a beta of 1.04.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.27). Cummins had a net margin of 2.16% and a return on equity of 25.68%. The company had revenue of $8.54 billion for the quarter, compared to analyst estimates of $8.10 billion. During the same quarter in the previous year, the business posted $4.52 earnings per share. Cummins’s revenue was up 9.9% on a year-over-year basis. On average, equities research analysts expect that Cummins Inc. will post 18.29 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 7th. Stockholders of record on Friday, February 23rd were paid a dividend of $1.68 per share. The ex-dividend date was Thursday, February 22nd. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.29%. Cummins’s dividend payout ratio (DPR) is 129.73%.

Insider Transactions at Cummins

In other news, CEO Jennifer Rumsey sold 739 shares of the firm’s stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $266.91, for a total transaction of $197,246.49. Following the completion of the transaction, the chief executive officer now directly owns 2,698 shares of the company’s stock, valued at approximately $720,123.18. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In other Cummins news, SVP Tony Satterthwaite sold 37,450 shares of Cummins stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $265.05, for a total value of $9,926,122.50. Following the completion of the sale, the senior vice president now directly owns 73,741 shares of the company’s stock, valued at approximately $19,545,052.05. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jennifer Rumsey sold 739 shares of Cummins stock in a transaction that occurred on Friday, February 16th. The stock was sold at an average price of $266.91, for a total transaction of $197,246.49. Following the completion of the sale, the chief executive officer now directly owns 2,698 shares of the company’s stock, valued at $720,123.18. The disclosure for this sale can be found here. Insiders sold a total of 51,289 shares of company stock valued at $13,576,838 in the last ninety days. Corporate insiders own 0.56% of the company’s stock.

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.