EP Wealth Advisors LLC Purchases Shares of 17,817 Cummins Inc. $CMI

Key Points

• EP Wealth Advisors acquired 17,817 Cummins shares worth approximately $12.7 million in the second quarter. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive view, with 11 Buy ratings and four Holds; Cummins has a consensus rating of “Moderate Buy” and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, although earnings per share of $6.73 missed estimates. The company also raised its quarterly dividend to $2.20 per share, implying a 1.5% yield.

EP Wealth Advisors LLC acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 17,817 shares of the company's stock, valued at approximately $12,707,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Activest Wealth Management increased its stake in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after acquiring an additional 43 shares during the period. Cedar Mountain Advisors LLC lifted its stake in Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after purchasing an additional 45 shares during the period. Persistent Asset Partners Ltd bought a new position in Cummins during the second quarter worth about $26,000. Wellington Shields Capital Management LLC bought a new stake in shares of Cummins in the 4th quarter valued at approximately $27,000. Finally, Key Financial Inc raised 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 in the last quarter. 83.46% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

CMI has been the subject of several analyst reports. Weiss Ratings upgraded Cummins from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Citigroup increased their price objective on Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Raymond James Financial lifted 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. Finally, JPMorgan Chase & Co. upped their target price on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $745.64.

Cummins Stock Down 0.9%

Shares of CMI opened at $587.87 on Friday. The company has a market capitalization of $80.93 billion, a P/E ratio of 30.04, a PEG ratio of 1.41 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. Cummins Inc. has a one year low of $389.52 and a one year high of $737.76. The business's 50 day simple moving average is $660.86 and its 200-day simple moving average is $628.31.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results 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 net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same period in the prior 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, sell-side analysts predict that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. The ex-dividend date is Friday, August 21st. This is a boost from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.5%. Cummins's dividend payout ratio (DPR) is currently 40.88%.

Cummins Company 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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