Commerce Bank Purchases Shares of 20,303 Cummins Inc. $CMI

Key Points

• Commerce Bank acquired 20,303 Cummins shares worth approximately $14.48 million during the second quarter. Institutional investors and hedge funds collectively own 83.46% of Cummins.
• Analysts maintain a generally positive view, with an average “Moderate Buy” rating and a consensus price target of $745.64. Price targets range from $700 to $845, though Zacks downgraded the stock to “hold.”
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but its $6.73 earnings per share missed estimates of $7.21. The company increased its quarterly dividend to $2.20 per share, producing a 1.5% annualized yield.

Commerce Bank acquired a new position in Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 20,303 shares of the company's stock, valued at approximately $14,480,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in CMI. Activest Wealth Management boosted its holdings in Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares in the last quarter. Cedar Mountain Advisors LLC grew its position in Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares during the period. Persistent Asset Partners Ltd purchased a new position in Cummins in the second quarter valued at $26,000. Wellington Shields Capital Management LLC acquired a new position in shares of Cummins in the fourth quarter worth about $27,000. Finally, Key Financial Inc boosted its stake in shares of Cummins by 62.5% during the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after acquiring an additional 20 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on CMI shares. Raymond James Financial raised their target price on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research report on Tuesday, May 26th. Weiss Ratings raised Cummins from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, August 17th. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price objective on shares of Cummins in a research report on Wednesday, August 5th. Zacks Research downgraded Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Evercore reiterated an "outperform" rating and set a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and an average price target of $745.64.

Cummins Stock Down 0.9%

CMI stock opened at $587.87 on Friday. Cummins Inc. has a 12 month low of $389.52 and a 12 month high of $737.76. The company has a market cap of $80.93 billion, a price-to-earnings ratio of 30.04, a PEG ratio of 1.40 and a beta of 1.24. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The firm has a 50-day moving average of $660.86 and a two-hundred day moving average of $628.31.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business's quarterly revenue was up 9.4% on a year-over-year basis. During the same period last year, the firm posted $6.43 EPS. As a group, analysts forecast that Cummins Inc. will post 30.06 earnings per share for the current fiscal 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 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, August 21st. This is a boost from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is presently 40.88%.

Cummins Company 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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