Cummins Inc. $CMI Stock Purchased by Farther Finance Advisors LLC

Key Points

• Farther Finance Advisors increased its Cummins stake by 190% in the third quarter, bringing its holdings to 23,500 shares valued at approximately $12.1 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, though earnings per share of $6.73 missed analysts’ $7.21 estimate. The company also raised its quarterly dividend to $2.20, equal to an annualized yield of about 1.7%.
• Shares opened at $520.13, well below the consensus analyst price target of $717.59. Analysts maintain a “Moderate Buy” consensus, despite several recent target-price reductions.

Farther Finance Advisors LLC boosted its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 190.0% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 23,500 shares of the company's stock after purchasing an additional 15,397 shares during the quarter. Farther Finance Advisors LLC's holdings in Cummins were worth $12,139,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Cummins during the 2nd quarter valued at about $8,204,241,000. Bank of America Corp DE purchased a new position in Cummins in the second quarter worth about $1,408,353,000. Bank of New York Mellon Corp bought a new stake in Cummins during the second quarter worth approximately $973,198,000. Legal & General Group Plc bought a new stake in Cummins during the second quarter worth approximately $666,635,000. Finally, SG Americas Securities LLC raised its position in 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 purchasing an additional 530,812 shares during the period. Institutional investors own 83.46% of the company's stock.

Cummins Price Performance

Shares of CMI stock opened at $520.13 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The company has a market capitalization of $71.60 billion, a P/E ratio of 26.58, a P/E/G ratio of 1.36 and a beta of 1.24. The company's 50-day simple moving average is $569.74 and its two-hundred day simple moving average is $620.98. Cummins Inc. has a one year low of $400.72 and a one year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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 the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business's revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm posted $6.43 EPS. As a group, equities analysts anticipate that Cummins Inc. will post 30.13 EPS for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were issued a $2.20 dividend. The ex-dividend date was Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.7%. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is currently 44.97%.

Insider Activity

In other news, VP Earl Newsome sold 698 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

CMI has been the topic of several analyst reports. Truist Financial cut their target price on Cummins from $894.00 to $779.00 and set a "buy" rating on the stock in a research report on Monday. Evercore lowered their price target on Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a research report on Tuesday, August 11th. Wells Fargo & Company dropped their price objective on shares of Cummins from $874.00 to $760.00 and set an "overweight" rating for the company in a research note on Thursday. CICC Research started coverage on shares of Cummins in a research report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective on the stock. Finally, Morgan Stanley increased their target price on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $717.59.

Cummins Profile

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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