Capital Investment Advisors LLC Increases Stake in Cummins Inc. $CMI

Key Points

• Capital Investment Advisors LLC increased its stake in Cummins Inc. by 14.4%, bringing its total to 124,319 shares valued at approximately $40.71 million.
• Cummins reported earnings of $6.43 EPS for the last quarter, exceeding analysts' estimates, while revenue was slightly lower than the previous year's results.
• The company recently raised its quarterly dividend from $1.82 to $2.00, reflecting a commitment to returning value to shareholders.

Capital Investment Advisors LLC raised its position in Cummins Inc. (NYSE:CMI - Free Report) by 14.4% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 124,319 shares of the company's stock after purchasing an additional 15,619 shares during the period. Capital Investment Advisors LLC owned 0.09% of Cummins worth $40,715,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of the company. V Square Quantitative Management LLC increased its position in shares of Cummins by 1.0% in the 2nd quarter. V Square Quantitative Management LLC now owns 3,285 shares of the company's stock valued at $1,076,000 after purchasing an additional 31 shares during the last quarter. Bank of Jackson Hole Trust increased its position in shares of Cummins by 1.2% in the 1st quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock valued at $887,000 after purchasing an additional 33 shares during the last quarter. Scotia Capital Inc. increased its position in shares of Cummins by 0.5% in the 1st quarter. Scotia Capital Inc. now owns 6,714 shares of the company's stock valued at $2,104,000 after purchasing an additional 34 shares during the last quarter. Van Hulzen Asset Management LLC increased its position in shares of Cummins by 1.2% in the 1st quarter. Van Hulzen Asset Management LLC now owns 2,781 shares of the company's stock valued at $872,000 after purchasing an additional 34 shares during the last quarter. Finally, Sylvest Advisors LLC boosted its holdings in shares of Cummins by 1.0% in the 2nd quarter. Sylvest Advisors LLC now owns 3,342 shares of the company's stock valued at $1,095,000 after buying an additional 34 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Up 0.4%

CMI stock opened at $419.61 on Tuesday. Cummins Inc. has a one year low of $260.02 and a one year high of $432.50. The stock has a market capitalization of $57.82 billion, a PE ratio of 19.73, a price-to-earnings-growth ratio of 2.02 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The company has a fifty day moving average of $395.56 and a 200-day moving average of $343.21.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping the consensus estimate of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter last year, the business earned $5.26 EPS. The business's revenue was down 1.7% on a year-over-year basis. As a group, analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. Cummins's dividend payout ratio (DPR) is 37.61%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on CMI. Barclays upped their target price on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Citigroup upped their target price on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a report on Tuesday, September 23rd. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Evercore ISI restated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Finally, Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Nine equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and an average target price of $393.57.

Insider Buying and Selling

In other news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the completion of the transaction, the vice president owned 7,693 shares in the company, valued at $2,994,038.67. This trade represents a 38.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the transaction, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. This represents a 19.43% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 35,119 shares of company stock worth $14,159,885. 0.41% of the stock is currently owned by insiders.

About Cummins

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.

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