Baker Avenue Asset Management LP Invests $250,000 in Cummins Inc. (NYSE:CMI)

Key Points

• Baker Avenue Asset Management LP acquired 797 shares of Cummins Inc. for around $250,000, signaling an interest in the company's potential growth.
• Cummins has announced an increase in its quarterly dividend to $2.00 per share, up from $1.82, reflecting a commitment to returning value to shareholders.
• Analysts have mixed sentiments on Cummins, with target price adjustments ranging from $338.00 to $431.00, resulting in a consensus rating of "Hold" for the stock.

Baker Avenue Asset Management LP purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund purchased 797 shares of the company's stock, valued at approximately $250,000.

A number of other hedge funds have also bought and sold shares of the business. Olde Wealth Management LLC bought a new position in shares of Cummins during the 1st quarter valued at approximately $30,000. Capital A Wealth Management LLC bought a new position in Cummins in the 4th quarter worth approximately $32,000. Opal Wealth Advisors LLC bought a new position in Cummins in the 1st quarter worth approximately $37,000. Richardson Financial Services Inc. bought a new position in Cummins in the 1st quarter worth approximately $39,000. Finally, Ritter Daniher Financial Advisory LLC DE boosted its stake in Cummins by 316.7% in the 4th quarter. Ritter Daniher Financial Advisory LLC DE now owns 125 shares of the company's stock worth $44,000 after purchasing an additional 95 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

CMI has been the topic of several recent research reports. Citigroup reaffirmed a "buy" rating and set a $360.00 price objective (up from $350.00) on shares of Cummins in a report on Tuesday, June 24th. Evercore ISI dropped their price objective on Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. Robert W. Baird raised their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. UBS Group lowered Cummins from a "buy" rating to a "sell" rating and dropped their price target for the stock from $400.00 to $240.00 in a research note on Monday, April 7th. Finally, The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and upped their target price for the company from $410.00 to $431.00 in a research report on Tuesday, May 27th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $361.92.

Insider Buying and Selling at Cummins

In other Cummins news, Director John H. Stone purchased 1,000 shares of Cummins stock in a transaction dated Friday, May 16th. The stock was acquired at an average cost of $332.08 per share, with a total value of $332,080.00. Following the acquisition, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. This represents a 69.40% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.41% of the company's stock.

Cummins Price Performance

Shares of Cummins stock traded up $11.99 on Tuesday, reaching $373.58. The company's stock had a trading volume of 1,898,926 shares, compared to its average volume of 957,928. The company has a market capitalization of $51.46 billion, a P/E ratio of 18.59, a PEG ratio of 2.01 and a beta of 1.02. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $387.90. The stock has a 50-day moving average price of $335.18 and a 200-day moving average price of $330.79. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.40.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.88% and a net margin of 8.20%. The business had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the prior year, the company posted $5.26 EPS. The company's quarterly revenue was down 1.7% on a year-over-year basis. Analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be paid a $2.00 dividend. This is an increase from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 2.1%. Cummins's dividend payout ratio (DPR) is 36.22%.

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.