Energy Income Partners LLC Buys New Holdings in Cummins Inc. $CMI

Key Points

• Energy Income Partners initiated a Cummins position by purchasing 51,595 shares worth approximately $36.8 million in the second quarter. Institutional investors own 83.46% of Cummins shares.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above expectations, but earnings per share of $6.73 fell short of the $7.21 consensus estimate.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equivalent to an annualized $8.80 payout and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Energy Income Partners LLC purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 51,595 shares of the company's stock, valued at approximately $36,798,000.

A number of other large investors also recently modified their holdings of the company. Persistent Asset Partners Ltd purchased a new position in shares of Cummins in the 2nd quarter valued at about $26,000. Elevation Wealth Partners LLC raised its position in Cummins by 91.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after purchasing an additional 22 shares during the last quarter. Cedar Mountain Advisors LLC raised its holdings in shares of Cummins by 1,500.0% in the first 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. Activest Wealth Management lifted its position in Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after acquiring an additional 43 shares during the period. Finally, Wellington Shields Capital Management LLC acquired a new stake in shares of Cummins during the fourth quarter worth $27,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Performance

NYSE:CMI opened at $620.43 on Wednesday. The firm has a 50-day moving average price of $664.02 and a two-hundred day moving average price of $628.32. The company has a market capitalization of $85.41 billion, a P/E ratio of 31.70, a price-to-earnings-growth ratio of 1.50 and a beta of 1.24. Cummins Inc. has a twelve month low of $389.52 and a twelve month high of $737.76. 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 (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same period last year, the business earned $6.43 earnings per share. The company's revenue for the quarter was up 9.4% on a year-over-year basis. As a group, research analysts expect that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. Cummins's payout ratio is currently 40.88%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CMI. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Cummins in a report on Monday, August 3rd. JPMorgan Chase & Co. increased their target price on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Barclays raised their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Argus upped their price objective on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. Finally, Morgan Stanley increased their price objective on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Cummins has a consensus rating of "Moderate Buy" and a consensus price target of $745.64.

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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