Bellwether Advisors LLC Invests $1.66 Million in Cummins Inc. $CMI

Key Points

• Bellwether Advisors LLC initiated a new stake in Cummins during the first quarter, buying 3,081 shares valued at about $1.66 million.
• Institutional ownership remains high, with several other hedge funds also adding to positions, and 83.46% of Cummins shares are held by hedge funds and other institutional investors.
• Cummins reported better-than-expected Q1 earnings of $6.15 per share on revenue of $8.40 billion, and it raised its quarterly dividend to $2.20 per share from $2.00.

Bellwether Advisors LLC bought a new position in Cummins Inc. (NYSE:CMI - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The firm bought 3,081 shares of the company's stock, valued at approximately $1,658,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CMI. ABN Amro Investment Solutions raised its holdings in Cummins by 13.5% during the first quarter. ABN Amro Investment Solutions now owns 6,336 shares of the company's stock valued at $3,409,000 after acquiring an additional 756 shares during the period. PNC Financial Services Group Inc. lifted its holdings in Cummins by 22.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 135,724 shares of the company's stock worth $73,022,000 after purchasing an additional 25,125 shares in the last quarter. Oslo Pensjonsforsikring AS bought a new position in Cummins in the 1st quarter worth approximately $501,000. HORAN Wealth LLC bought a new position in Cummins in the 1st quarter worth approximately $945,000. Finally, Baader Bank Aktiengesellschaft grew its holdings in Cummins by 23.7% during the 1st quarter. Baader Bank Aktiengesellschaft now owns 1,725 shares of the company's stock valued at $877,000 after buying an additional 330 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Cummins

In other Cummins news, VP Marvin Boakye sold 3,481 shares of Cummins stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $679.90, for a total value of $2,366,731.90. Following the transaction, the vice president owned 8,508 shares in the company, valued at $5,784,589.20. The trade was a 29.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Donald G. Jackson sold 730 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, the vice president directly owned 8,316 shares of the company's stock, valued at $5,912,010.72. The trade was a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 13,579 shares of company stock worth $9,377,684 over the last quarter. Corporate insiders own 0.30% of the company's stock.

Cummins Price Performance

Shares of CMI stock opened at $659.94 on Wednesday. The stock has a 50 day moving average price of $674.90 and a 200 day moving average price of $616.91. The firm has a market capitalization of $91.07 billion, a P/E ratio of 34.25, a P/E/G ratio of 1.56 and a beta of 1.22. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a 52-week low of $344.02 and a 52-week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same period last year, the company earned $5.96 earnings per share. The business's revenue for the quarter was up 2.7% compared to the same quarter last year. As a group, sell-side analysts predict that Cummins Inc. will post 29.39 earnings per share for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be given a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is currently 41.52%.

Wall Street Analysts Forecast Growth

CMI has been the topic of several recent analyst reports. UBS Group reiterated a "buy" rating on shares of Cummins in a research report on Wednesday, June 17th. Barclays increased their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Morgan Stanley raised their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. Finally, Weiss Ratings cut shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $740.07.

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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