Cummins Inc. $CMI Shares Purchased by Bank of America Corp DE

Key Points

• Bank of America increased its Cummins stake by 7.4% in the first quarter, adding 121,102 shares to hold 1.76 million shares valued at approximately $945.4 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported first-quarter adjusted earnings of $6.15 per share, beating estimates by $0.52, while revenue rose 2.7% year over year to $8.40 billion.
• The company raised its quarterly dividend to $2.20 per share, or $8.80 annually, representing a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $740.07.

Bank of America Corp DE boosted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 7.4% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,757,248 shares of the company's stock after acquiring an additional 121,102 shares during the period. Bank of America Corp DE owned about 1.27% of Cummins worth $945,434,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Cedar Mountain Advisors LLC grew its stake in shares of Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after purchasing an additional 45 shares during the period. Activest Wealth Management boosted its stake in shares of Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after acquiring an additional 43 shares during the last quarter. Wellington Shields Capital Management LLC acquired a new position in shares of Cummins in the fourth quarter valued at approximately $27,000. Key Financial Inc lifted 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 purchasing an additional 20 shares during the period. Finally, Kemnay Advisory Services Inc. purchased a new stake in Cummins in the 4th quarter valued at about $28,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

CMI stock opened at $635.55 on Friday. The firm has a 50 day moving average of $670.10 and a two-hundred day moving average of $622.52. Cummins Inc. has a 12 month low of $354.68 and a 12 month high of $737.76. The company has a market capitalization of $87.70 billion, a price-to-earnings ratio of 32.98, a P/E/G ratio of 1.54 and a beta of 1.22. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter last year, the company posted $5.96 earnings per share. The company's revenue for the quarter was up 2.7% compared to the same quarter last year. As a group, equities analysts anticipate that Cummins Inc. will post 29.39 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced 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 is an increase from Cummins's previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Analyst Ratings Changes

A number of brokerages have recently commented on CMI. Weiss Ratings downgraded shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Argus boosted their price objective on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research report on Monday, June 1st. Robert W. Baird set a $700.00 target price on Cummins in a research note on Wednesday, May 6th. Finally, Wells Fargo & Company raised their target price on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus price target of $740.07.

Insiders Place Their Bets

In other Cummins news, EVP Bonnie J. Fetch sold 652 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the completion of the transaction, the executive vice president directly owned 11,679 shares of the company's stock, valued at approximately $8,177,519.01. This trade represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Nathan R. Stoner sold 607 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $694.06, for a total value of $421,294.42. Following the transaction, the vice president directly owned 9,447 shares in the company, valued at approximately $6,556,784.82. This represents a 6.04% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,579 shares of company stock valued at $9,377,684 over the last 90 days. Company insiders own 0.30% of the company's stock.

Cummins 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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.