Atlas Brown Inc. Lowers Position in Cummins Inc. $CMI

Key Points

• Atlas Brown Inc. reduced its Cummins stake by 38.6% in the second quarter, selling 1,995 shares and retaining 3,169 shares valued at approximately $2.26 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly EPS of $6.73, below the $7.21 consensus estimate, while revenue rose 9.4% year over year to $9.46 billion. The company increased its quarterly dividend to $2.20 per share, implying a 1.4% yield.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $745.64, compared with the stock’s opening price of $644.21. Two company vice presidents also recently sold shares, while insiders own just 0.30% of the stock.

Atlas Brown Inc. cut its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 38.6% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,169 shares of the company's stock after selling 1,995 shares during the quarter. Atlas Brown Inc.'s holdings in Cummins were worth $2,260,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CMI. Brighton Jones LLC increased its position in shares of Cummins by 4.1% during the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after purchasing an additional 83 shares during the last quarter. Intech Investment Management LLC lifted its position in Cummins by 40.8% in the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock worth $1,240,000 after buying an additional 1,146 shares during the last quarter. Treasurer of the State of North Carolina boosted its stake in Cummins by 2.8% in the second quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock worth $21,055,000 after buying an additional 1,759 shares in the last quarter. ICW Investment Advisors LLC purchased a new stake in Cummins in the second quarter worth approximately $225,000. Finally, Osterweis Capital Management Inc. bought a new position in Cummins during the second quarter valued at approximately $31,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the transaction, the vice president owned 8,316 shares in the company, valued at $5,912,010.72. This represents a 8.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the sale, the vice president directly owned 11,986 shares of the company's stock, valued at $8,344,773.06. The trade was a 29.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is owned by corporate insiders.

Cummins Stock Down 0.0%

NYSE CMI opened at $644.21 on Monday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The stock has a market capitalization of $88.68 billion, a PE ratio of 32.92, a PEG ratio of 1.55 and a beta of 1.24. Cummins Inc. has a 1 year low of $383.90 and a 1 year high of $737.76. The business's 50-day moving average is $668.83 and its 200 day moving average is $625.48.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The business had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $6.43 EPS. Sell-side analysts forecast that Cummins Inc. will post 29.73 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. This is a boost 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 presently 40.88%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on CMI shares. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price objective on shares of Cummins in a report on Wednesday. Evercore reaffirmed an "outperform" rating and set a $845.00 target price on shares of Cummins in a report on Monday, May 11th. JPMorgan Chase & Co. lifted their target price on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Raymond James Financial boosted their price target on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 26th. Finally, Zacks Research downgraded Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $745.64.

About Cummins

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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