Harrell Investment Partners LLC Raises Stake in Cummins Inc. $CMI

Key Points

• Harrell Investment Partners LLC increased its stake in Cummins Inc. by 18.6%, owning 10,015 shares worth approximately $3.28 million at the end of the second quarter.
• Cummins recently reported earnings of $6.43 per share, exceeding analyst expectations, despite a year-over-year revenue decrease of 1.7%.
• The company announced a new quarterly dividend of $2.00 per share, representing an annualized yield of 1.9%, indicating a positive change from its previous dividend.

Harrell Investment Partners LLC raised its stake in Cummins Inc. (NYSE:CMI - Free Report) by 18.6% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 10,015 shares of the company's stock after buying an additional 1,571 shares during the quarter. Harrell Investment Partners LLC's holdings in Cummins were worth $3,280,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Olde Wealth Management LLC purchased a new stake in Cummins in the 1st quarter valued at $30,000. Accredited Wealth Management LLC purchased a new stake in Cummins in the 1st quarter valued at $31,000. Opal Wealth Advisors LLC purchased a new stake in Cummins in the 1st quarter valued at $37,000. Richardson Financial Services Inc. purchased a new stake in Cummins in the 1st quarter valued at $39,000. Finally, Costello Asset Management INC purchased a new stake in Cummins in the 1st quarter valued at $40,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Price Performance

CMI opened at $418.24 on Thursday. The stock's 50-day moving average price is $391.38 and its 200 day moving average price is $341.08. Cummins Inc. has a 12-month low of $260.02 and a 12-month high of $432.50. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The firm 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 earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the prior year, the company earned $5.26 EPS. Cummins's revenue was down 1.7% on a year-over-year basis. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's dividend payout ratio is currently 37.61%.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CMI. Citigroup increased their price target on Cummins from $425.00 to $485.00 and gave the stock a "buy" rating in a report on Tuesday. Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. Wolfe Research upgraded Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Barclays increased their price target on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Finally, Truist Financial increased their price target on Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $393.57.

Insider Buying and Selling

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president owned 7,693 shares of the company's stock, valued at $2,994,038.67. This trade represents a 38.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Robert Enright sold 1,860 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the sale, the vice president directly owned 955 shares in the company, valued at $384,158.30. This represents a 66.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,119 shares of company stock worth $14,159,885 over the last ninety days. Company insiders own 0.41% of the company's stock.

About Cummins

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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