Envestnet Portfolio Solutions Inc. Has $12.02 Million Stock Position in Cummins Inc. $CMI

Key Points

• Envestnet Portfolio Solutions increased its Cummins stake by 376.1% in the second quarter, bringing its holdings to 16,857 shares valued at approximately $12.02 million. Institutional investors collectively own 83.46% of Cummins stock.
• Analysts maintain a generally positive outlook, with 13 Buy ratings and five Holds producing a consensus “Moderate Buy” rating and an average price target of $745.12, despite some recent target reductions.
• Cummins shares opened at $524.51 after the company missed quarterly EPS estimates but exceeded revenue expectations; the company also raised its quarterly dividend to $2.20, or $8.80 annualized.

Envestnet Portfolio Solutions Inc. boosted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 376.1% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 16,857 shares of the company's stock after purchasing an additional 13,316 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in Cummins were worth $12,023,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of CMI. Security National Bank of Sioux City Iowa IA increased its holdings in Cummins by 15.9% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 6,781 shares of the company's stock valued at $4,836,000 after buying an additional 928 shares during the period. SkyView Investment Advisors LLC lifted its holdings in shares of Cummins by 14.0% during the 2nd quarter. SkyView Investment Advisors LLC now owns 2,200 shares of the company's stock worth $1,569,000 after acquiring an additional 271 shares during the period. Sequoia Financial Advisors LLC boosted its position in shares of Cummins by 20.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,783 shares of the company's stock worth $5,551,000 after acquiring an additional 1,296 shares in the last quarter. Tidal Investments LLC boosted its position in shares of Cummins by 35.9% during the 2nd quarter. Tidal Investments LLC now owns 28,312 shares of the company's stock worth $20,192,000 after acquiring an additional 7,480 shares in the last quarter. Finally, National Pension Service increased its stake in Cummins by 0.4% in the second quarter. National Pension Service now owns 416,179 shares of the company's stock valued at $296,823,000 after acquiring an additional 1,710 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

Several brokerages have commented on CMI. JPMorgan Chase & Co. lowered their price objective on shares of Cummins from $690.00 to $600.00 and set a "neutral" rating for the company in a research report on Wednesday. Argus lifted their price target on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Evercore lowered their price target on Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. DA Davidson upped their price objective on Cummins from $605.00 to $750.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Finally, Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Thirteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $745.12.

Insiders Place Their Bets

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the transaction, the vice president directly owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

Cummins Stock Down 0.3%

Shares of CMI opened at $524.51 on Thursday. The stock's 50-day moving average price is $597.46 and its two-hundred day moving average price is $622.66. Cummins Inc. has a 12 month low of $400.72 and a 12 month high of $737.76. The company has a market capitalization of $72.20 billion, a PE ratio of 26.80, a PEG ratio of 1.42 and a beta of 1.23. 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 (EPS) for the quarter, missing analysts' consensus estimates 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 return on equity of 25.29% and a net margin of 7.82%.Cummins's revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the business earned $6.43 earnings per share. On average, analysts anticipate that Cummins Inc. will post 30.06 EPS for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were issued a $2.20 dividend. The ex-dividend date was 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 yield of 1.7%. Cummins's dividend payout ratio (DPR) is presently 44.97%.

Cummins Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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