Cummins Inc. $CMI Stock Bought by Apella Capital LLC

Key Points

• Apella Capital increased its Cummins stake by 188.6% in the third quarter, owning 4,115 shares valued at approximately $2.13 million. Institutional investors collectively hold 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings of $6.73 per share missed expectations of $7.21.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equivalent to an annualized $8.80 dividend and a 1.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $717.59.

Apella Capital LLC lifted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 188.6% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 4,115 shares of the company's stock after buying an additional 2,689 shares during the quarter. Apella Capital LLC's holdings in Cummins were worth $2,126,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Cummins during the 2nd quarter valued at about $8,204,241,000. Bank of America Corp DE acquired a new stake in Cummins in the second quarter worth about $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in shares of Cummins during the second quarter worth about $973,198,000. Legal & General Group Plc purchased a new stake in shares of Cummins during the second quarter worth about $666,635,000. Finally, SG Americas Securities LLC increased its holdings in shares of Cummins by 257.9% during the first quarter. SG Americas Securities LLC now owns 736,670 shares of the company's stock valued at $396,343,000 after acquiring an additional 530,812 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Up 0.6%

Shares of NYSE:CMI opened at $523.47 on Friday. The company has a market capitalization of $72.06 billion, a price-to-earnings ratio of 26.75, a PEG ratio of 1.37 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 business has a 50-day moving average price of $567.50 and a 200 day moving average price of $620.30. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates 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 analyst estimates of $9.33 billion. During the same period in the previous year, the company earned $6.43 EPS. The company's quarterly revenue was up 9.4% compared to the same quarter last year. Sell-side analysts expect 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. Investors of record on Friday, August 21st were given a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is 44.97%.

Analyst Upgrades and Downgrades

CMI has been the subject of a number of research analyst reports. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Truist Financial dropped their price objective on shares of Cummins from $894.00 to $779.00 and set a "buy" rating on the stock in a report on Monday. Wells Fargo & Company cut 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. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, August 31st. Finally, DA Davidson boosted their price target on Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $717.59.

Insiders Place Their Bets

In other Cummins news, VP Earl Newsome sold 698 shares of the business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.30% of the company's stock.

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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