Beacon Pointe Advisors LLC Takes $9.56 Million Position in Cummins Inc. $CMI

Key Points

• Beacon Pointe Advisors acquired 13,411 shares of Cummins worth approximately $9.56 million in the second quarter. Institutional investors collectively own 83.46% of the company’s outstanding stock.
• Analysts maintain a generally positive outlook, with 12 Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings of $6.73 per share fell short of estimates. The company raised its quarterly dividend to $2.20 per share, implying a 1.6% yield.

Beacon Pointe Advisors LLC acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 13,411 shares of the company's stock, valued at approximately $9,561,000.

Other institutional investors have also recently bought and sold shares of the company. Kimelman & Baird LLC purchased a new position in shares of Cummins in the 2nd quarter worth $143,000. Livforsakringsbolaget Skandia Omsesidigt acquired a new stake in Cummins during the second quarter worth about $36,750,000. Rakuten Investment Management Inc. purchased a new position in shares of Cummins in the 2nd quarter worth about $15,605,000. RB Capital Management LLC acquired a new position in shares of Cummins in the 2nd quarter valued at about $429,000. Finally, Orion Capital Management LLC purchased a new stake in shares of Cummins during the 2nd quarter worth about $176,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts recently commented on CMI shares. Wells Fargo & Company raised their price target on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. UBS Group reduced their target price on shares of Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a report on Wednesday, August 5th. CICC Research started coverage on shares of Cummins in a research report on Sunday, August 23rd. They set an "outperform" rating for the company. Morgan Stanley raised their price objective on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Finally, Robert W. Baird set a $700.00 target price on Cummins in a research report on Wednesday, May 6th. Twelve analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $745.64.

Cummins Stock Down 1.6%

CMI stock opened at $564.61 on Friday. 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 firm has a market cap of $77.72 billion, a PE ratio of 28.85, a P/E/G ratio of 1.37 and a beta of 1.24. Cummins Inc. has a 12 month low of $389.52 and a 12 month high of $737.76. The firm has a 50 day simple moving average of $647.45 and a 200 day simple moving average of $627.90.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins's quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the company posted $6.43 EPS. Equities research analysts forecast that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. This is a positive change from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 21st. Cummins's dividend payout ratio (DPR) is currently 44.97%.

Insider Buying and Selling at Cummins

In related news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the transaction, the vice president owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.30% of the stock is owned by company insiders.

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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