Cummins Inc. (NYSE:CMI) Position Increased by Avantax Advisory Services Inc.

Key Points

• Avantax Advisory Services Inc. increased its holdings in Cummins Inc. by 13%, now owning 8,711 shares valued at approximately $2.73 million.
• Cummins reported a quarterly earnings per share (EPS) of $5.96, surpassing estimates, despite a 2.7% decline in year-over-year revenue.
• The company declared a quarterly dividend of $2.00 per share, marking an increase from its previous dividend, with an annualized yield of 2.18%.

Avantax Advisory Services Inc. increased its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 13.0% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 8,711 shares of the company's stock after buying an additional 1,005 shares during the period. Avantax Advisory Services Inc.'s holdings in Cummins were worth $2,730,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Meeder Asset Management Inc. lifted its holdings in Cummins by 208.0% during the fourth quarter. Meeder Asset Management Inc. now owns 77 shares of the company's stock valued at $27,000 after purchasing an additional 52 shares during the last quarter. Olde Wealth Management LLC purchased a new stake in shares of Cummins in the first quarter worth about $30,000. Capital A Wealth Management LLC bought a new position in shares of Cummins in the fourth quarter worth approximately $32,000. Opal Wealth Advisors LLC bought a new position in shares of Cummins in the first quarter worth approximately $37,000. Finally, Richardson Financial Services Inc. bought a new position in Cummins during the first quarter valued at approximately $39,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Performance

Shares of CMI stock traded down $0.56 during mid-day trading on Wednesday, hitting $365.78. The stock had a trading volume of 916,565 shares, compared to its average volume of 884,997. The company's 50-day simple moving average is $331.76 and its 200-day simple moving average is $331.04. Cummins Inc. has a fifty-two week low of $260.02 and a fifty-two week high of $387.90. The firm has a market cap of $50.39 billion, a PE ratio of 18.20, a PEG ratio of 2.04 and a beta of 1.03. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.34 and a quick ratio of 0.81.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Monday, May 5th. The company reported $5.96 earnings per share for the quarter, beating the consensus estimate of $4.92 by $1.04. The company had revenue of $8.17 billion during the quarter, compared to the consensus estimate of $8.22 billion. Cummins had a return on equity of 26.88% and a net margin of 8.20%. Cummins's revenue was down 2.7% on a year-over-year basis. During the same period in the previous year, the firm posted $5.08 EPS. Sell-side analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be given a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. This represents a $8.00 annualized dividend and a dividend yield of 2.19%. Cummins's dividend payout ratio (DPR) is presently 36.22%.

Insider Transactions at Cummins

In related news, Director John H. Stone purchased 1,000 shares of the company's stock in a transaction dated Friday, May 16th. The shares were acquired at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the transaction, the director owned 2,441 shares of the company's stock, valued at $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.41% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CMI. Robert W. Baird increased their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Truist Financial dropped their price target on Cummins from $420.00 to $338.00 and set a "hold" rating for the company in a research note on Tuesday, April 8th. Barclays raised their price objective on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. JPMorgan Chase & Co. raised their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Finally, Evercore ISI reduced their price target on Cummins from $451.00 to $419.00 and set an "outperform" rating for the company in a report on Monday, May 19th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $361.92.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.