Cummins Inc. $CMI Stock Bought by Global Wealth Management Investment Advisory Inc.

Key Points

• Global Wealth Management Investment Advisory increased its Cummins stake by 1,473.8% in the third quarter, ending the period with 9,144 shares valued at about $4.7 million.
• Cummins reported quarterly EPS of $8.25, slightly above estimates, while revenue of $9.44 billion fell short of forecasts; revenue was up 13.5% year over year. The company announced a quarterly dividend of $2.20 per share, an annualized yield of 1.9%.
• Analyst views were mixed: the stock had a “Moderate Buy” consensus and average price target of $662.18, while shares opened at $466.73 and JPMorgan cut its target to $465 with a Neutral rating.

Global Wealth Management Investment Advisory Inc. grew its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 1,473.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 9,144 shares of the company's stock after acquiring an additional 8,563 shares during the period. Global Wealth Management Investment Advisory Inc.'s holdings in Cummins were worth $4,723,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. purchased a new position in Cummins in the 2nd quarter valued at approximately $8,204,241,000. Bank of America Corp DE acquired a new position in Cummins during the second quarter worth $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in Cummins during the second quarter worth $973,198,000. Legal & General Group Plc purchased a new stake in Cummins during the second quarter worth $666,635,000. Finally, Vontobel Holding Ltd. boosted its position in Cummins by 1,436.1% during the third quarter. Vontobel Holding Ltd. now owns 584,674 shares of the company's stock worth $302,025,000 after purchasing an additional 546,613 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Price Performance

Shares of NYSE:CMI opened at $466.73 on Tuesday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The business's fifty day moving average price is $524.50 and its two-hundred day moving average price is $599.03. The stock has a market cap of $64.25 billion, a PE ratio of 19.48, a price-to-earnings-growth ratio of 1.24 and a beta of 1.26. Cummins Inc. has a one year low of $443.62 and a one year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The company reported $8.25 earnings per share for the quarter, topping analysts' consensus estimates of $8.20 by $0.05. The company had revenue of $9.44 billion during the quarter, compared to analysts' expectations of $9.89 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The business's revenue for the quarter was up 13.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.59 earnings per share. On average, analysts forecast that Cummins Inc. will post 29.98 EPS for the current fiscal year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be issued a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Friday, November 20th. Cummins's dividend payout ratio is 36.73%.

Analysts Set New Price Targets

CMI has been the subject of a number of research analyst reports. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. Morgan Stanley boosted their price objective on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Evercore lowered their price objective on shares of Cummins from $845.00 to $782.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lowered their price objective on shares of Cummins from $600.00 to $465.00 and set a "neutral" rating on the stock in a research note on Friday. Finally, CICC Research initiated coverage on shares of Cummins in a report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 target price for the company. Thirteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $662.18.

Trending Headlines about Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: AI data-center power demand and a strong order backlog could support growth. However, supply constraints may limit the company’s ability to meet demand. Zacks article
• Neutral Sentiment: Barclays cut its price target to $600 from $675 but maintained an Overweight rating, indicating it still sees potential upside from the referenced share price. Barclays rating information
• Neutral Sentiment: Oppenheimer maintained its Hold rating, while Wells Fargo, Citigroup and Truist also reduced their price targets; the reports provided do not specify the new targets. Oppenheimer rating Wells Fargo target report Citigroup target report Truist target report
• Negative Sentiment: JPMorgan lowered its target sharply, from $600 to $465, and moved to a Neutral rating. The bank’s target is approximately in line with the referenced share price. JPMorgan rating information
• Negative Sentiment: An analysis cited cuts to fair value estimates as analysts trimmed growth and margin expectations. Truck-market weakness is another concern alongside supply constraints. Yahoo Finance article

Insider Transactions at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of the firm's 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 directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.30% of the company's stock.

About Cummins

Cummins Inc is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications.

The company's offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.

Cummins serves customers in markets around the world through manufacturing operations, distribution networks and service locations.

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