Aptus Capital Advisors LLC Raises Stake in Cummins Inc. $CMI

Key Points

• Aptus Capital Advisors LLC increased its holdings in Cummins Inc. by 63.6%, owning 8,295 shares worth $2.6 million.
• The company recently declared a $2.00 quarterly dividend, up from the previous $1.82, resulting in an annualized yield of 2.0%.
• JPMorgan Chase & Co. raised the target price of Cummins shares from $308.00 to $320.00, while Wells Fargo upgraded the stock to an "overweight" rating.

Aptus Capital Advisors LLC raised its holdings in Cummins Inc. (NYSE:CMI - Free Report) by 63.6% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 8,295 shares of the company's stock after purchasing an additional 3,224 shares during the quarter. Aptus Capital Advisors LLC's holdings in Cummins were worth $2,600,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in the business. Brighton Jones LLC lifted its position in Cummins by 4.1% during the 4th 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 period. MML Investors Services LLC raised its stake in shares of Cummins by 3.2% during the fourth quarter. MML Investors Services LLC now owns 16,663 shares of the company's stock worth $5,809,000 after purchasing an additional 509 shares during the last quarter. Transce3nd LLC acquired a new stake in shares of Cummins during the fourth quarter worth $50,000. Tower Research Capital LLC TRC grew its position in Cummins by 24.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 6,210 shares of the company's stock valued at $2,165,000 after buying an additional 1,225 shares during the last quarter. Finally, TD Waterhouse Canada Inc. increased its stake in Cummins by 7.2% in the 4th quarter. TD Waterhouse Canada Inc. now owns 4,871 shares of the company's stock valued at $1,698,000 after buying an additional 327 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

CMI has been the subject of several recent analyst reports. JPMorgan Chase & Co. raised their target price on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 6th. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Barclays lifted their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Citigroup increased their target price on Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Finally, Wells Fargo & Company raised Cummins to an "overweight" rating in a report on Monday, August 11th. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Cummins has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Price Performance

CMI stock opened at $396.1750 on Thursday. The firm has a 50 day moving average of $351.98 and a 200-day moving average of $333.95. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $408.38. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The company has a market cap of $54.59 billion, a price-to-earnings ratio of 18.63, a PEG ratio of 1.96 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly 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 return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the prior year, the firm posted $5.26 EPS. The company's revenue was down 1.7% compared to the same quarter last year. As a group, equities analysts expect that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be paid a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 2.0%. Cummins's dividend payout ratio is presently 34.23%.

Insiders Place Their Bets

In other Cummins news, 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 sale, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director owned 5,227 shares in the company, valued at $2,118,659.91. This represents a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 24,179 shares of company stock worth $9,636,871. 0.41% of the stock is owned by company insiders.

Cummins Profile

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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