Cummins Inc. $CMI Stake Increased by Wedmont Private Capital

Key Points

• Wedmont Private Capital increased its Cummins stake by 789.4% in the third quarter, bringing its holdings to 15,760 shares valued at approximately $8.1 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive outlook, with 13 Buy ratings and five Holds resulting in a “Moderate Buy” consensus and an average price target of $717.59, despite some recent target reductions.
• Cummins shares recently traded at $522.30 after the company reported quarterly revenue of $9.46 billion, up 9.4% year over year, but missed EPS expectations. The company also raised its quarterly dividend to $2.20, implying a 1.7% yield.

Wedmont Private Capital increased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 789.4% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 15,760 shares of the company's stock after acquiring an additional 13,988 shares during the period. Wedmont Private Capital's holdings in Cummins were worth $8,141,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of Cummins during the 2nd quarter worth $8,204,241,000. Bank of America Corp DE acquired a new stake in shares of Cummins in the second quarter valued at about $1,408,353,000. Bank of New York Mellon Corp acquired a new stake in shares of Cummins in the second quarter valued at about $973,198,000. Legal & General Group Plc purchased a new stake in Cummins during the second quarter worth about $666,635,000. Finally, Amundi grew its position in Cummins by 19.7% during the second quarter. Amundi now owns 893,772 shares of the company's stock worth $637,446,000 after buying an additional 147,093 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Ratings Changes

A number of brokerages have issued reports on CMI. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. UBS Group decreased their price target on Cummins from $835.00 to $741.00 and set a "buy" rating on the stock in a research note on Wednesday, September 30th. CICC Research began coverage on Cummins in a report on Sunday, August 23rd. They issued an "outperform" rating and a $781.00 price target on the stock. Citigroup raised their price objective 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 decreased their target price on Cummins from $874.00 to $760.00 and set an "overweight" rating on the stock in a research report on Thursday. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, Cummins has an average rating of "Moderate Buy" and an average target price of $717.59.

Insider Activity at Cummins

In related 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 sale, 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 transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.30% of the stock is currently owned by insiders.

Cummins Price Performance

Shares of NYSE CMI traded up $1.90 on Friday, hitting $522.30. The company's stock had a trading volume of 289,125 shares, compared to its average volume of 982,136. The stock has a 50 day moving average of $569.74 and a 200-day moving average of $620.98. The company has a market capitalization of $71.90 billion, a price-to-earnings ratio of 26.69, a price-to-earnings-growth ratio of 1.36 and a beta of 1.24. Cummins Inc. has a 12-month low of $400.72 and a 12-month 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 issued its quarterly earnings data 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 for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The company's revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $6.43 earnings per share. As a group, research analysts predict that Cummins Inc. will post 30.13 EPS for the current year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were given a $2.20 dividend. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Friday, August 21st. 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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