Empowered Funds LLC Increases Stock Holdings in Cummins Inc. $CMI

Key Points

• Empowered Funds LLC increased its Cummins stake by 57.4% in the first quarter, bringing its holdings to 36,327 shares valued at approximately $19.5 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported first-quarter adjusted earnings of $6.15 per share, exceeding estimates of $5.63, while revenue rose 2.7% year over year to $8.40 billion.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equal to an annualized $8.80 dividend and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $740.07.

Empowered Funds LLC boosted its position in Cummins Inc. (NYSE:CMI - Free Report) by 57.4% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 36,327 shares of the company's stock after purchasing an additional 13,241 shares during the quarter. Empowered Funds LLC's holdings in Cummins were worth $19,545,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently made changes to their positions in the company. Thompson Investment Management Inc. bought a new position in shares of Cummins in the fourth quarter worth approximately $26,000. Activest Wealth Management lifted its position in Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after purchasing 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 worth $26,000 after buying an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC purchased a new position in Cummins in the 4th quarter worth approximately $27,000. Finally, Key Financial Inc increased its holdings in shares of Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after buying an additional 20 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Trading Down 2.9%

Shares of NYSE CMI opened at $642.33 on Wednesday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The stock has a market cap of $88.63 billion, a P/E ratio of 33.33, a price-to-earnings-growth ratio of 1.61 and a beta of 1.22. The firm has a 50-day moving average of $671.57 and a 200 day moving average of $621.44. Cummins Inc. has a 1 year low of $354.68 and a 1 year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter in the prior year, the company posted $5.96 earnings per share. The business's revenue for the quarter was up 2.7% on a year-over-year basis. As a group, sell-side analysts expect that Cummins Inc. will post 29.39 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. Shareholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. This is a boost from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. Cummins's dividend payout ratio is presently 41.52%.

Insiders Place Their Bets

In other news, VP Jennifer Mary Bush sold 5,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the transaction, the vice president owned 11,986 shares of the company's stock, valued at $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Brett Michael Merritt sold 701 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the transaction, the insider owned 10,404 shares of the company's stock, valued at approximately $7,165,755. This trade represents a 6.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on CMI shares. UBS Group reaffirmed a "buy" rating on shares of Cummins in a research note on Wednesday, June 17th. Truist Financial increased their price objective on Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Raymond James Financial raised their price objective on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday, May 26th. Evercore restated an "outperform" rating and issued a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Finally, Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Cummins has an average rating of "Moderate Buy" and a consensus price target of $740.07.

Cummins Profile

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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