Farther Finance Advisors LLC Raises Position in Cummins Inc. $CMI

Key Points

• Farther Finance Advisors LLC increased its position in Cummins Inc. by 24.8% during the 2nd quarter, now owning shares valued at $1,125,000.
• Cummins recently announced a quarterly dividend of $2.00 per share, an increase from the previous $1.82, giving it a 1.9% yield.
• The company's stock is currently facing a 1.4% decline, with a recent opening price of $418.24 after reporting earnings that exceeded analysts' estimates.

Farther Finance Advisors LLC lifted its stake in shares of Cummins Inc. (NYSE:CMI - Free Report) by 24.8% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,435 shares of the company's stock after purchasing an additional 682 shares during the period. Farther Finance Advisors LLC's holdings in Cummins were worth $1,125,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Fox Run Management L.L.C. purchased a new stake in shares of Cummins during the 1st quarter worth approximately $2,749,000. Alpha Cubed Investments LLC purchased a new position in Cummins in the 1st quarter valued at approximately $440,000. Assenagon Asset Management S.A. grew its stake in Cummins by 8.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after buying an additional 1,114 shares in the last quarter. Invesco Ltd. grew its stake in Cummins by 11.6% in the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock valued at $381,129,000 after buying an additional 126,362 shares in the last quarter. Finally, Artemis Investment Management LLP grew its stake in Cummins by 19.1% in the 1st quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock valued at $2,428,000 after buying an additional 1,241 shares in the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Down 1.4%

Shares of NYSE:CMI opened at $418.24 on Thursday. The firm has a fifty day moving average price of $391.38 and a two-hundred day moving average price of $341.08. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins Inc. has a one year low of $260.02 and a one year high of $432.50. The company has a market cap of $57.63 billion, a price-to-earnings ratio of 19.66, a PEG ratio of 2.05 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same period in the previous year, the firm posted $5.26 EPS. The firm's revenue was down 1.7% compared to the same quarter last year. Analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is presently 37.61%.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Truist Financial lifted their price objective on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research note on Wednesday, September 3rd. Citigroup lifted their price objective on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a research note on Tuesday. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Barclays raised their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and an average price target of $393.57.

Insider Activity at Cummins

In other news, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the sale, the vice president directly owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Mark Andrew Smith sold 1,580 shares of Cummins stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $419.00, for a total transaction of $662,020.00. Following the sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at $13,232,858. This represents a 4.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 35,119 shares of company stock worth $14,159,885 in the last three months. 0.41% of the stock is owned by insiders.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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