Cummins Inc. $CMI Shares Acquired by NEOS Investment Management LLC

Key Points

• NEOS Investment Management increased its Cummins stake by 13.3% in the second quarter, bringing its holdings to 22,337 shares valued at approximately $15.9 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $764.54.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but missed earnings expectations with EPS of $6.73 versus $7.21 forecast. The company also raised its quarterly dividend to $2.20 per share, yielding about 1.6%.

NEOS Investment Management LLC increased its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 13.3% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 22,337 shares of the company's stock after purchasing an additional 2,619 shares during the quarter. NEOS Investment Management LLC's holdings in Cummins were worth $15,931,000 as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. Persistent Asset Partners Ltd acquired a new position in Cummins in the second quarter valued at approximately $26,000. Elevation Wealth Partners LLC lifted its position in Cummins by 91.7% in the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after acquiring an additional 22 shares during the last quarter. Cedar Mountain Advisors LLC boosted its holdings in shares of Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after acquiring an additional 45 shares during the period. Wellington Shields Capital Management LLC purchased a new position in shares of Cummins during the fourth quarter worth about $27,000. Finally, Key Financial Inc lifted its stake in shares of Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after acquiring an additional 20 shares during the period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Argus upped their target price on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Evercore reiterated an "outperform" rating and set a $845.00 price target on shares of Cummins in a report on Monday, May 11th. Citigroup upped their target price on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Wells Fargo & Company increased their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, Cummins has an average rating of "Moderate Buy" and an average price target of $764.54.

Insiders Place Their Bets

In related news, VP Earl Newsome sold 698 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the sale, the vice president owned 4,479 shares in the company, valued at $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.30% of the stock is currently owned by company insiders.

Cummins Stock Performance

NYSE:CMI opened at $561.44 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The firm has a 50-day moving average of $632.30 and a two-hundred day moving average of $626.49. The stock has a market cap of $77.29 billion, a P/E ratio of 28.69, a PEG ratio of 1.47 and a beta of 1.23. Cummins Inc. has a 1-year low of $390.11 and a 1-year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company's revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the company earned $6.43 earnings per share. On average, research analysts expect that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were paid a dividend of $2.20 per share. The ex-dividend date was Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a yield of 1.6%. Cummins's payout ratio is presently 44.97%.

About Cummins

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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