Apollon Wealth Management LLC Raises Holdings in Cummins Inc. $CMI

Key Points

• Apollon Wealth Management increased its stake in Cummins by 16.5% in the first quarter, buying 2,294 additional shares and bringing its total holdings to 16,183 shares worth about $8.7 million.
• Cummins reported better-than-expected quarterly results, with EPS of $6.15 versus the $5.63 consensus and revenue of $8.40 billion, slightly above estimates.
• Analyst sentiment remains constructive, with several firms raising price targets and Cummins currently carrying a Moderate Buy rating and average price target of $731.86, while the company also paid a $2.00 quarterly dividend.

Apollon Wealth Management LLC increased its position in Cummins Inc. (NYSE:CMI - Free Report) by 16.5% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 16,183 shares of the company's stock after buying an additional 2,294 shares during the period. Apollon Wealth Management LLC's holdings in Cummins were worth $8,707,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in CMI. Thompson Investment Management Inc. bought a new position in Cummins during the fourth quarter valued at $26,000. Activest Wealth Management grew its stake in shares of Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares in the last quarter. Wellington Shields Capital Management LLC bought a new stake in shares of Cummins in the 4th quarter worth about $27,000. Birchwood Financial Partners Inc. purchased a new stake in shares of Cummins during the 4th quarter valued at about $28,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Cummins during the 4th quarter valued at about $28,000. 83.46% of the stock is owned by institutional investors.

Cummins Trading Up 0.7%

NYSE:CMI opened at $690.51 on Tuesday. The firm has a 50-day simple moving average of $674.01 and a 200-day simple moving average of $599.69. Cummins Inc. has a one year low of $322.45 and a one year high of $737.76. The firm has a market cap of $95.28 billion, a P/E ratio of 35.83, a P/E/G ratio of 1.68 and a beta of 1.24. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company's quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the firm earned $5.96 earnings per share. Equities analysts anticipate that Cummins Inc. will post 29.31 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio is 41.52%.

Analyst Ratings Changes

Several brokerages have weighed in on CMI. Evercore reissued an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. UBS Group reaffirmed a "buy" rating on shares of Cummins in a research note on Wednesday, June 17th. JPMorgan Chase & Co. raised their price objective on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Barclays upped their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, Morgan Stanley boosted their price objective on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and an average price target of $731.86.

Insider Activity at Cummins

In related news, insider Brett Michael Merritt sold 701 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the completion of the sale, the insider owned 10,404 shares of the company's stock, valued at $7,165,755. This represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Donald G. Jackson sold 730 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the sale, the vice president owned 8,316 shares of the company's stock, valued at approximately $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,579 shares of company stock valued at $9,377,684 over the last 90 days. Company insiders own 0.30% of the company's stock.

Cummins 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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