Cummins Inc. $CMI Shares Newly Bought by ASK Capital Investment Managers LLC

Key Points

• ASK Capital Investment Managers initiated a Cummins position by purchasing 8,520 shares worth approximately $4.4 million, making CMI about 4.9% of its portfolio. Institutional investors collectively own 83.46% of the stock.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $708.18, despite recent target reductions from some firms.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings of $6.73 per share missed estimates. The company also declared a quarterly dividend of $2.20, representing a 1.7% annualized yield.

ASK Capital Investment Managers LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 8,520 shares of the company's stock, valued at approximately $4,401,000. Cummins accounts for about 4.9% of ASK Capital Investment Managers LLC's portfolio, making the stock its 9th largest holding.

A number of other institutional investors and hedge funds have also recently modified their holdings of CMI. Valmark Advisers Inc. lifted its stake in Cummins by 1.9% in the first quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock valued at $472,000 after purchasing an additional 16 shares during the last quarter. Guardian Partners Inc. grew its holdings in Cummins by 1.0% during the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after purchasing an additional 16 shares during the period. Uhlmann Price Securities LLC increased 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 buying an additional 17 shares during the last quarter. Legacy Financial Advisors Inc. increased its position in Cummins by 2.0% in the second quarter. Legacy Financial Advisors Inc. now owns 955 shares of the company's stock worth $681,000 after buying an additional 19 shares during the last quarter. Finally, Mengis Capital Management Inc. raised its stake in shares of Cummins by 0.3% in the fourth quarter. Mengis Capital Management Inc. now owns 6,463 shares of the company's stock valued at $3,299,000 after buying an additional 20 shares during the period. 83.46% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on CMI shares. Truist Financial dropped their price target on Cummins from $894.00 to $779.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. DA Davidson lifted their price objective on Cummins from $605.00 to $750.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. JPMorgan Chase & Co. lowered their price objective on Cummins from $690.00 to $600.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 23rd. CICC Research initiated coverage on shares of Cummins in a report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective on the stock. Finally, Sanford C. Bernstein reiterated a "market perform" rating and set a $700.00 target price on shares of Cummins in a research report on Wednesday, August 5th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $708.18.

Insider Buying and Selling

In other Cummins 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 transaction of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares of the company's stock, valued at $2,562,973.38. The trade was a 13.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.30% of the stock is currently owned by corporate insiders.

Cummins Trading Up 0.3%

NYSE:CMI opened at $529.57 on Wednesday. The company has a market cap of $72.90 billion, a P/E ratio of 27.06, a P/E/G ratio of 1.39 and a beta of 1.24. The stock's fifty day moving average price is $562.88 and its two-hundred day moving average price is $620.45. Cummins Inc. has a 1 year low of $400.72 and a 1 year high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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 company had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter last year, the firm posted $6.43 earnings per share. Cummins's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, analysts expect that Cummins Inc. will post 30.10 EPS for the current year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be paid a $2.20 dividend. The ex-dividend date is Friday, November 20th. This represents a $8.80 annualized dividend and a yield of 1.7%. Cummins's dividend payout ratio (DPR) is currently 44.97%.

About Cummins

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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