D.B. Root & Company LLC Purchases New Stake in Cummins Inc. $CMI

Key Points

• D.B. Root & Company purchased 2,147 Cummins shares worth approximately $1.53 million in the second quarter. Institutional investors and hedge funds collectively own 83.46% of CMI’s outstanding stock.
• Analysts remain broadly positive on Cummins, with a “Moderate Buy” consensus rating from 12 Buy and four Hold ratings and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, though earnings per share of $6.73 missed estimates. The company also raised its quarterly dividend from $2.00 to $2.20 per share, producing an annualized yield of about 1.5%.

D.B. Root & Company LLC purchased a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 2,147 shares of the company's stock, valued at approximately $1,531,000.

Several other institutional investors and hedge funds have also recently modified their holdings of CMI. Activest Wealth Management lifted its stake in shares of Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC grew its stake in Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in Cummins in the 2nd quarter valued at about $26,000. Wellington Shields Capital Management LLC bought a new position in Cummins in the 4th quarter valued at about $27,000. Finally, Key Financial Inc lifted its position in Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after acquiring an additional 20 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

CMI has been the topic of several research reports. Barclays upped their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Evercore reiterated an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Argus lifted their price objective on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Morgan Stanley increased their target price 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. Finally, CICC Research assumed coverage on Cummins in a research note on Sunday. They issued an "outperform" rating for the company. Twelve investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $745.64.

Cummins Trading Up 0.0%

Shares of CMI opened at $587.87 on Monday. Cummins Inc. has a 52-week low of $389.52 and a 52-week high of $737.76. The business's fifty day moving average is $660.86 and its 200-day moving average is $628.55. 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 firm has a market cap of $80.93 billion, a price-to-earnings ratio of 30.04, a PEG ratio of 1.40 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.Cummins's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $6.43 earnings per share. Equities analysts anticipate that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is 44.97%.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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