Bellars Harris Wealth Management LLC Buys Shares of 13,609 Cummins Inc. $CMI

Key Points

• Bellars Harris Wealth Management initiated a position in Cummins by purchasing 13,609 shares worth approximately $9.7 million, making the stock 2% of its portfolio. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 missed expectations of $7.21.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, implying an annualized dividend of $8.80 and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Bellars Harris Wealth Management LLC purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 13,609 shares of the company's stock, valued at approximately $9,706,000. Cummins makes up 2.0% of Bellars Harris Wealth Management LLC's portfolio, making the stock its 13th biggest position.

A number of other institutional investors have also made changes to their positions in CMI. Brighton Jones LLC grew its position in Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after purchasing an additional 83 shares in the last quarter. Intech Investment Management LLC grew its holdings in shares of Cummins by 40.8% in the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock valued at $1,240,000 after acquiring an additional 1,146 shares in the last quarter. Treasurer of the State of North Carolina increased its position in shares of 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 valued at $21,055,000 after acquiring an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC bought a new stake in Cummins during the second quarter worth about $225,000. Finally, Osterweis Capital Management Inc. acquired a new position in Cummins during the second quarter valued at approximately $31,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

NYSE CMI opened at $631.81 on Friday. The stock has a market cap of $86.98 billion, a PE ratio of 32.28, a P/E/G ratio of 1.50 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The firm has a 50-day moving average of $665.58 and a 200-day moving average of $627.15. Cummins Inc. has a 52-week low of $389.52 and a 52-week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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%. The firm's revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the company earned $6.43 earnings per share. On average, sell-side analysts anticipate that Cummins Inc. will post 30.15 EPS for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be issued a dividend of $2.20 per share. This represents a $8.80 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is 40.88%.

Analysts Set New Price Targets

Several research firms have weighed in on CMI. Wells Fargo & Company boosted their price target on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Robert W. Baird set a $700.00 target price on shares of Cummins in a report on Wednesday, May 6th. UBS Group cut their price target on shares of Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a research note on Wednesday, August 5th. Sanford C. Bernstein restated a "market perform" rating and set a $700.00 price objective on shares of Cummins in a research note on Wednesday, August 5th. Finally, JPMorgan Chase & Co. raised their target price on shares of Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target 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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