46,191 Shares in Cummins Inc. $CMI Purchased by Great Lakes Advisors LLC

Key Points

• Great Lakes Advisors bought 46,191 Cummins shares worth approximately $32.9 million in the second quarter. Institutional investors and hedge funds collectively own 83.46% of the company.
• Cummins shares were trading at $620.43, down 3.2%, after the company reported quarterly earnings of $6.73 per share—below expectations—despite revenue rising 9.4% year over year to $9.46 billion.
• The company increased its quarterly dividend to $2.20 per share, or $8.80 annualized, representing a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Great Lakes Advisors LLC purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 46,191 shares of the company's stock, valued at approximately $32,944,000.

Several other large investors have also bought and sold shares of the business. Compass Wealth Management LLC bought a new position in Cummins in the second quarter valued at approximately $334,000. Robotti Robert bought a new stake in shares of Cummins during the 2nd quarter valued at $392,000. Danske Bank A S acquired a new position in shares of Cummins in the 2nd quarter valued at $94,674,000. Diversify Advisory Services LLC acquired a new position in shares of Cummins in the 2nd quarter valued at $10,060,000. Finally, Wealthfront Advisers LLC bought a new position in shares of Cummins in the 2nd quarter worth $12,353,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Trading Down 3.2%

NYSE CMI opened at $620.43 on Wednesday. The stock has a market capitalization of $85.41 billion, a price-to-earnings ratio of 31.70, a PEG ratio of 1.50 and a beta of 1.24. The stock's 50 day moving average price is $664.02 and its two-hundred day moving average price is $628.32. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same period in the prior year, the business earned $6.43 earnings per share. Cummins's revenue was up 9.4% compared to the same quarter last year. As a group, analysts anticipate that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. This is an increase from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. Cummins's payout ratio is 40.88%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on CMI shares. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Citigroup raised their target price on Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Morgan Stanley boosted their target price on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Raymond James Financial upped their price target on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research note on Tuesday, May 26th. Finally, Argus increased their price target on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research report on Monday, June 1st. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $745.64.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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