HighTower Advisors LLC Cuts Stock Holdings in Cummins Inc. $CMI

Key Points

• HighTower Advisors cut its Cummins stake by 45.1% in the second quarter, selling 159,180 shares and retaining 194,076 shares worth approximately $138.4 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive view of Cummins, with a consensus rating of “Moderate Buy” and an average price target of $764.54, despite mixed individual rating changes.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of estimates. The company also raised its quarterly dividend to $2.20 per share, implying a 1.6% yield.

HighTower Advisors LLC lowered its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 45.1% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 194,076 shares of the company's stock after selling 159,180 shares during the period. HighTower Advisors LLC owned approximately 0.14% of Cummins worth $138,417,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Cedar Mountain Advisors LLC raised its stake in shares of Cummins by 1,500.0% in 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 last quarter. Persistent Asset Partners Ltd purchased a new position in Cummins in the 2nd quarter worth about $26,000. Wellington Shields Capital Management LLC bought a new position in Cummins during the 4th quarter valued at about $27,000. Key Financial Inc grew its stake in shares of Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after acquiring an additional 20 shares during the period. Finally, Birchwood Financial Partners Inc. purchased a new position in shares of Cummins during the fourth quarter valued at approximately $28,000. 83.46% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on CMI. Raymond James Financial increased their price target on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday, May 26th. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Truist Financial set a $894.00 price target on shares of Cummins in a research report on Wednesday, August 5th. UBS Group dropped their price objective on shares of Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a report on Wednesday, August 5th. Finally, Weiss Ratings cut shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Eleven analysts have rated the stock with a Buy rating and four have issued 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 a consensus price target of $764.54.

Cummins Stock Performance

NYSE:CMI opened at $561.44 on Monday. 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 Inc. has a 12-month low of $390.11 and a 12-month high of $737.76. The stock has a 50-day moving average price of $632.30 and a 200 day moving average price of $626.67. The stock has a market capitalization of $77.29 billion, a P/E ratio of 28.69, a P/E/G ratio of 1.52 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $9.33 billion. During the same period last year, the business posted $6.43 EPS. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. Equities research analysts forecast that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were given a dividend of $2.20 per share. The ex-dividend date was Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. Cummins's dividend payout ratio (DPR) is 44.97%.

Insider Activity at Cummins

In related news, VP Earl Newsome sold 698 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares in the company, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.30% of the company's stock.

About Cummins

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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