Friedenthal Financial Takes Position in Cummins Inc. $CMI

Key Points

• Friedenthal Financial opened a new position in Cummins during the first quarter, buying 2,001 shares worth about $1.08 million.
• Cummins reported better-than-expected quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly topping forecasts; revenue rose 2.7% year over year.
• The company also paid a $2.00 quarterly dividend ($8.00 annualized), while analysts remain broadly constructive with a Moderate Buy consensus and an average price target of $731.86.

Friedenthal Financial acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 2,001 shares of the company's stock, valued at approximately $1,077,000.

Several other hedge funds have also recently bought and sold shares of the company. Fifth Third Wealth Advisors LLC boosted its holdings in Cummins by 77.4% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 15,596 shares of the company's stock valued at $8,391,000 after acquiring an additional 6,807 shares during the period. Brown Lisle Cummings Inc. increased its stake in Cummins by 0.4% during the first quarter. Brown Lisle Cummings Inc. now owns 10,317 shares of the company's stock worth $5,551,000 after purchasing an additional 43 shares during the period. OP Asset Management Ltd acquired a new stake in shares of Cummins during the first quarter worth about $7,518,000. Provenance Wealth Advisors LLC acquired a new stake in shares of Cummins during the first quarter worth about $93,000. Finally, Banque Cantonale Vaudoise boosted its stake in shares of Cummins by 76.2% in the first quarter. Banque Cantonale Vaudoise now owns 11,954 shares of the company's stock valued at $6,431,000 after purchasing an additional 5,169 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Stock Down 0.7%

CMI stock opened at $694.12 on Thursday. The company's 50 day moving average price is $668.44 and its 200 day moving average price is $595.56. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins Inc. has a fifty-two week low of $317.74 and a fifty-two week high of $737.76. The firm has a market capitalization of $95.78 billion, a price-to-earnings ratio of 36.02, a PEG ratio of 1.71 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping 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 company had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same quarter in the previous year, the firm earned $5.96 earnings per share. The firm's quarterly revenue was up 2.7% on a year-over-year basis. On average, equities research analysts anticipate that Cummins Inc. will post 29.31 EPS for the current fiscal year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insider Buying and Selling at Cummins

In related news, insider Brett Michael Merritt sold 701 shares of the stock in a transaction on Monday, May 11th. The stock was 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 $7,165,755. This represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Bonnie J. Fetch sold 652 shares of the firm's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $700.19, for a total value of $456,523.88. Following the completion of the sale, the executive vice president owned 11,679 shares in the company, valued at approximately $8,177,519.01. This represents a 5.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages recently weighed in on CMI. Citigroup lifted their price objective on shares of Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Argus increased their target price on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. Wall Street Zen cut shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Sanford C. Bernstein restated a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. Finally, Robert W. Baird set a $700.00 price objective on Cummins in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $731.86.

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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