Cardinal Point Capital Management ULC Takes $328,000 Position in Cummins Inc. $CMI

Key Points

• Cardinal Point Capital Management ULC has acquired a new stake in Cummins Inc., purchasing 1,000 shares valued at approximately $328,000 during the second quarter.
• Multiple hedge funds, including Vanguard Group Inc. and Raymond James Financial Inc., have increased their holdings in Cummins, demonstrating strong institutional interest.
• Cummins recently reported Q2 earnings per share of $6.43, exceeding analyst expectations, while also announcing a quarterly dividend of $2.00 per share.

Cardinal Point Capital Management ULC acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,000 shares of the company's stock, valued at approximately $328,000.

A number of other hedge funds have also modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after purchasing an additional 321,823 shares during the period. Northern Trust Corp grew its holdings in Cummins by 1.2% during the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after acquiring an additional 22,202 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Cummins by 0.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock worth $512,343,000 after acquiring an additional 8,487 shares during the period. Raymond James Financial Inc. grew its holdings in Cummins by 152.3% during the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after acquiring an additional 817,384 shares during the period. Finally, Invesco Ltd. grew its holdings in Cummins by 11.6% during the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after acquiring an additional 126,362 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Cummins

In related news, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president owned 7,693 shares in the company, valued at $2,994,038.67. This represents a 38.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Robert Enright sold 1,860 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the sale, the vice president owned 955 shares in the company, valued at approximately $384,158.30. This trade represents a 66.07% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 43,119 shares of company stock worth $17,674,285. 0.41% of the stock is currently owned by company insiders.

Cummins Trading Up 1.0%

NYSE:CMI opened at $421.79 on Friday. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $440.51. 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 stock has a market cap of $58.12 billion, a P/E ratio of 19.83, a P/E/G ratio of 1.94 and a beta of 1.04. The stock has a 50-day simple moving average of $412.77 and a 200-day simple moving average of $357.20.

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

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, November 21st will be paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, November 21st. Cummins's dividend payout ratio is 37.61%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Citigroup increased their price target on Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research report on Tuesday, September 23rd. Robert W. Baird increased their price target on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Finally, JPMorgan Chase & Co. raised their target price on Cummins from $400.00 to $460.00 and gave the company a "neutral" rating in a research report on Tuesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $410.50.

Cummins Company 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.

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