CCM Investment Group LLC Invests $1.96 Million in Cummins Inc. (NYSE:CMI)

Key Points

• CCM Investment Group LLC has acquired 6,228 shares of Cummins Inc. for approximately $1.96 million, marking a significant investment in the company's stock.
• Goldman Sachs upgraded Cummins from a "neutral" to a "buy" rating, raising the price target from $410 to $431.
• Cummins recently announced a dividend increase to $2.00 per share, up from $1.82, reflecting a dividend yield of 2.1% and a payout ratio of 34.23%.

CCM Investment Group LLC purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 6,228 shares of the company's stock, valued at approximately $1,956,000.

Other institutional investors also recently modified their holdings of the company. Capital A Wealth Management LLC acquired a new position in shares of Cummins during the fourth quarter worth $32,000. Olde Wealth Management LLC acquired a new position in shares of Cummins during the first quarter worth $30,000. Opal Wealth Advisors LLC acquired a new position in shares of Cummins during the first quarter worth $37,000. Richardson Financial Services Inc. acquired a new stake in Cummins in the first quarter valued at $39,000. Finally, Costello Asset Management INC acquired a new stake in Cummins in the first quarter valued at $40,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms recently weighed in on CMI. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and increased their price objective for the company from $410.00 to $431.00 in a report on Tuesday, May 27th. Truist Financial increased their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a report on Thursday. Robert W. Baird increased their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Evercore ISI decreased their price objective on Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a report on Monday, May 19th. Finally, Barclays increased their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $370.83.

Cummins Stock Performance

Shares of CMI opened at $387.57 on Friday. The company has a current ratio of 1.64, a quick ratio of 0.81 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $53.40 billion, a P/E ratio of 18.22, a price-to-earnings-growth ratio of 1.91 and a beta of 1.02. The firm's fifty day simple moving average is $339.84 and its two-hundred day simple moving average is $331.47. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $391.56.

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

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.1%. Cummins's payout ratio is currently 34.23%.

Insider Activity

In related news, Director John H. Stone acquired 1,000 shares of the business's stock in a transaction dated Friday, May 16th. The shares were bought at an average price of $332.08 per share, with a total value of $332,080.00. Following the transaction, the director directly owned 2,441 shares of the company's stock, valued at $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.41% of the stock is owned by company insiders.

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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