Cove Private Wealth LLC Buys New Stake in Cummins Inc. $CMI

Key Points

• Cove Private Wealth LLC acquired a new stake in Cummins Inc. (CMI) during the 2nd quarter, purchasing 1,064 shares valued at approximately $348,000.
• Institutional investors own 83.46% of Cummins Inc.'s stock, highlighting significant interest from larger investment entities.
• Cummins announced a quarterly dividend of $2.00 per share, an increase from the previous dividend of $1.82, indicating confidence in ongoing profitability.

Cove Private Wealth LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 1,064 shares of the company's stock, valued at approximately $348,000.

Several other hedge funds and other institutional investors have also made changes to their positions in CMI. Olde Wealth Management LLC acquired a new position in shares of Cummins during the 1st quarter valued at $30,000. Accredited Wealth Management LLC acquired a new position in shares of Cummins during the 1st quarter valued at $31,000. Opal Wealth Advisors LLC acquired a new position in shares of Cummins during the 1st quarter valued at $37,000. Richardson Financial Services Inc. acquired a new position in shares of Cummins during the 1st quarter valued at $39,000. Finally, Costello Asset Management INC acquired a new position in shares of Cummins during the 1st quarter valued at $40,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Buying and Selling

In other news, Director Karen H. Quintos sold 1,307 shares of the business's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the sale, the director owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of Cummins 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 directly owned 20,738 shares of the company's stock, valued at $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. 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.

Cummins Price Performance

CMI opened at $418.59 on Friday. The company has a 50-day moving average of $394.06 and a 200-day moving average of $342.25. The company has a market capitalization of $57.68 billion, a P/E ratio of 19.68, a PEG ratio of 2.00 and a beta of 1.02. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $432.50. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

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

Cummins Increases Dividend

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

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Barclays lifted their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Citigroup lifted their price target on shares of Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Truist Financial lifted their price target on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a research note on Thursday, August 7th. Nine equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Cummins presently has a consensus rating of "Moderate Buy" and a consensus price target of $393.57.

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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