Cummins Inc. $CMI Stock: Fulcrum Wealth Advisors LLC Raises Position

Key Points

• Fulcrum Wealth Advisors increased its Cummins position by 611.8% in the third quarter, owning 16,264 shares worth approximately $8.4 million. Institutional investors collectively hold 83.46% of the company.
• Cummins reported quarterly EPS of $6.73, below the $7.21 consensus estimate, while revenue reached $9.46 billion and rose 9.4% year over year.
• The company declared a quarterly dividend of $2.20 per share, or $8.80 annualized, representing a 1.7% yield and a 44.97% payout ratio. Analysts maintain a “Moderate Buy” consensus with an average price target of $708.18.

Fulcrum Wealth Advisors LLC boosted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 611.8% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 16,264 shares of the company's stock after acquiring an additional 13,979 shares during the period. Cummins comprises 5.7% of Fulcrum Wealth Advisors LLC's investment portfolio, making the stock its 4th biggest holding. Fulcrum Wealth Advisors LLC's holdings in Cummins were worth $8,401,000 at the end of the most recent reporting period.

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

Insiders Place Their Bets

In other Cummins news, VP Earl Newsome sold 698 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares in the company, valued at $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.30% of the stock is currently owned by company insiders.

Cummins Stock Down 0.4%

Shares of NYSE:CMI opened at $530.72 on Friday. The company has a market capitalization of $73.06 billion, a PE ratio of 27.12, a P/E/G ratio of 1.40 and a beta of 1.24. 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 Inc. has a twelve month low of $405.82 and a twelve month high of $737.76. The firm has a 50 day simple moving average of $555.86 and a 200-day simple moving average of $619.86.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results 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 during the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company's quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $6.43 EPS. On average, equities analysts predict that Cummins Inc. will post 29.98 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a $2.20 dividend. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a yield of 1.7%. Cummins's payout ratio is 44.97%.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Morgan Stanley raised their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. UBS Group lowered their price objective on Cummins from $835.00 to $741.00 and set a "buy" rating for the company in a research report on Wednesday, September 30th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Bank of America dropped their price objective on Cummins from $731.00 to $600.00 in a report on Thursday, September 24th. Finally, Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. 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, the company has a consensus rating of "Moderate Buy" and a consensus price target of $708.18.

Cummins Profile

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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