Cummins Inc. $CMI Position Lifted by GAMMA Investing LLC

Key Points

• GAMMA Investing LLC increased its Cummins position by 351.3% in the third quarter, bringing its holdings to 25,447 shares valued at approximately $13.1 million. Institutional investors and hedge funds collectively own 83.46% of CMI.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings of $6.73 per share fell short of analysts’ $7.21 estimate. The company raised its quarterly dividend to $2.20 per share, representing a 1.7% yield.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and a $717.59 price target, although several firms recently lowered their targets. Cummins shares opened at $520.13, well below their 52-week high of $737.76.

GAMMA Investing LLC increased its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 351.3% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 25,447 shares of the company's stock after acquiring an additional 19,809 shares during the quarter. GAMMA Investing LLC's holdings in Cummins were worth $13,145,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CMI. Valmark Advisers Inc. grew its stake in shares of Cummins by 1.9% in the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock valued at $472,000 after buying an additional 16 shares during the period. Guardian Partners Inc. raised its position in shares of Cummins by 1.0% during the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after buying an additional 16 shares during the period. Nicolet Advisory Services LLC lifted its holdings in Cummins by 1.6% in the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after acquiring an additional 17 shares during the last quarter. Uhlmann Price Securities LLC grew its position in Cummins by 2.4% in the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after acquiring an additional 17 shares during the period. Finally, Legacy Financial Advisors Inc. increased its stake in Cummins by 2.0% during the second quarter. Legacy Financial Advisors Inc. now owns 955 shares of the company's stock worth $681,000 after acquiring an additional 19 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Cummins

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares in the company, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.30% of the stock is owned by corporate insiders.

Cummins Price Performance

Shares of CMI opened at $520.13 on Friday. The company has a market cap of $71.60 billion, a P/E ratio of 26.58, a PEG ratio of 1.36 and a beta of 1.24. Cummins Inc. has a fifty-two week low of $400.72 and a fifty-two week high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The firm's 50 day moving average price is $569.74 and its 200 day moving average price is $620.98.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. During the same period in the prior year, the business earned $6.43 EPS. The business's quarterly revenue was up 9.4% on a year-over-year basis. On average, research analysts forecast that Cummins Inc. will post 30.13 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were issued a dividend of $2.20 per share. This is a positive change from Cummins's previous quarterly dividend of $2.00. The ex-dividend date was Friday, August 21st. This represents a $8.80 annualized dividend and a yield of 1.7%. Cummins's dividend payout ratio (DPR) is currently 44.97%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CMI. Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Bank of America reduced their price objective on shares of Cummins from $731.00 to $600.00 in a report on Thursday, September 24th. DA Davidson upped their target price on shares of Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Sanford C. Bernstein reiterated a "market perform" rating and set a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Cummins from $690.00 to $600.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 23rd. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $717.59.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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