639 Shares in Cummins Inc. $CMI Acquired by Alhambra Investment Management LLC

Key Points

• Alhambra Investment Management LLC recently acquired 639 shares of Cummins Inc. valued at approximately $209,000, highlighting increased institutional investment in the company.
• Cummins reported $6.43 earnings per share (EPS) for its latest quarter, beating analysts' estimates, although quarterly revenue was down 1.7% year-over-year.
• The company declared a quarterly dividend of $2.00, up from $1.82, representing an annual yield of 1.9% and a payout ratio of 37.61%.

Alhambra Investment Management LLC bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 639 shares of the company's stock, valued at approximately $209,000.

Several other hedge funds have also modified their holdings of CMI. Brighton Jones LLC boosted its position in shares of Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after acquiring an additional 83 shares during the last quarter. Toronto Dominion Bank lifted its position in Cummins by 17.0% during the fourth quarter. Toronto Dominion Bank now owns 69,814 shares of the company's stock valued at $24,336,000 after buying an additional 10,133 shares in the last quarter. Ascent Group LLC lifted its position in Cummins by 2.7% during the fourth quarter. Ascent Group LLC now owns 1,417 shares of the company's stock valued at $494,000 after buying an additional 37 shares in the last quarter. Integrated Advisors Network LLC lifted its position in Cummins by 3.6% during the fourth quarter. Integrated Advisors Network LLC now owns 1,952 shares of the company's stock valued at $680,000 after buying an additional 68 shares in the last quarter. Finally, Capital A Wealth Management LLC acquired a new position in Cummins during the fourth quarter valued at approximately $32,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Trading Down 0.3%

CMI opened at $423.78 on Wednesday. The firm has a market capitalization of $58.39 billion, a P/E ratio of 19.92, a P/E/G ratio of 2.05 and a beta of 1.02. The firm's 50 day moving average is $389.93 and its 200-day moving average is $340.54. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $432.50. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53.

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

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. Cummins's payout ratio is presently 37.61%.

Analysts Set New Price Targets

A number of brokerages have weighed in on CMI. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and lifted their price target for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Finally, Robert W. Baird lifted their price target on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Nine research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $393.57.

Insiders Place Their Bets

In related news, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the sale, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total transaction of $748,203.60. Following the completion of the sale, the vice president owned 955 shares of the company's stock, valued at approximately $384,158.30. This trade represents a 66.07% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 35,119 shares of company stock valued at $14,159,885. 0.41% of the stock is owned by insiders.

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.

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