Strathmore Capital Advisors Inc. Acquires New Shares in Cummins Inc. $CMI

Key Points

• Strathmore Capital Advisors Inc. acquired 1,715 shares of Cummins Inc. valued at approximately $574,000, marking a new position in the company during the second quarter.
• Cummins recently announced an increase in its quarterly dividend to $2.00 per share, representing a positive change from the previous dividend of $1.82, with an annualized yield of 1.9%.
• The company reported strong quarterly earnings with an EPS of $6.43, exceeding analysts' estimates of $5.21, despite a year-over-year revenue decrease of 1.7%.

Strathmore Capital Advisors Inc. bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,715 shares of the company's stock, valued at approximately $574,000.

Several other hedge funds also recently added to or reduced their stakes in the business. Atticus Wealth Management LLC lifted its stake in Cummins by 8.5% in the 2nd quarter. Atticus Wealth Management LLC now owns 1,370 shares of the company's stock valued at $449,000 after buying an additional 107 shares in the last quarter. Mn Services Vermogensbeheer B.V. boosted its holdings in shares of Cummins by 0.6% during the second quarter. Mn Services Vermogensbeheer B.V. now owns 51,603 shares of the company's stock valued at $16,900,000 after acquiring an additional 300 shares during the period. Wedmont Private Capital increased its stake in shares of Cummins by 10.1% in the second quarter. Wedmont Private Capital now owns 1,541 shares of the company's stock valued at $515,000 after purchasing an additional 141 shares during the period. Swedbank AB grew its position in Cummins by 2.6% in the second quarter. Swedbank AB now owns 103,563 shares of the company's stock worth $33,917,000 after buying an additional 2,593 shares during the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd raised its stake in Cummins by 11.4% during the 2nd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 17,573 shares of the company's stock valued at $5,755,000 after purchasing an additional 1,802 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Cummins

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the completion of the sale, the vice president directly owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the transaction, the vice president owned 20,738 shares in the company, valued at $8,354,925.44. This represents a 19.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 35,119 shares of company stock valued at $14,159,885. Corporate insiders own 0.41% of the company's stock.

Wall Street Analysts Forecast Growth

CMI has been the subject of a number of research analyst reports. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Truist Financial lifted their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. Citigroup upped their price objective on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and increased their target price for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Finally, Barclays raised their price objective on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Nine research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $389.29.

Cummins Price Performance

Shares of NYSE CMI traded down $2.80 during trading on Friday, hitting $423.59. The company had a trading volume of 1,594,141 shares, compared to its average volume of 734,338. The stock has a fifty day simple moving average of $386.60 and a two-hundred day simple moving average of $339.46. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The firm has a market capitalization of $58.37 billion, a price-to-earnings ratio of 19.91, a price-to-earnings-growth ratio of 2.06 and a beta of 1.02. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $428.96.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same period in the prior year, the firm earned $5.26 earnings per share. The business's quarterly revenue was down 1.7% compared to the same quarter last year. On average, research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a dividend of $2.00 per share. The ex-dividend date was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 1.9%. Cummins's payout ratio is presently 37.61%.

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.