HORAN Wealth LLC Acquires New Stake in Cummins Inc. $CMI

Key Points

• HORAN Wealth LLC disclosed a new first-quarter stake in Cummins, buying 1,851 shares worth about $945,000.
• Institutional interest in Cummins remains high, with 83.46% of the stock owned by institutional investors and hedge funds, even as some company insiders have been selling shares recently.
• Cummins reported strong quarterly results, beating EPS estimates, and also raised its dividend to $2.20 per share from $2.00; analysts currently rate the stock a Moderate Buy with an average price target of $740.07.

HORAN Wealth LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 1,851 shares of the company's stock, valued at approximately $945,000.

Several other institutional investors also recently bought and sold shares of CMI. Baader Bank Aktiengesellschaft grew its holdings in shares of Cummins by 23.7% in the first quarter. Baader Bank Aktiengesellschaft now owns 1,725 shares of the company's stock valued at $877,000 after purchasing an additional 330 shares in the last quarter. Andra AP fonden increased its stake in Cummins by 87.2% during the 1st quarter. Andra AP fonden now owns 22,320 shares of the company's stock worth $12,009,000 after buying an additional 10,400 shares during the period. Wilkerson Advisory Group LLC lifted its holdings in Cummins by 35.4% during the 1st quarter. Wilkerson Advisory Group LLC now owns 172 shares of the company's stock worth $93,000 after buying an additional 45 shares in the last quarter. Glenview Trust Co lifted its holdings in Cummins by 1.4% during the 1st quarter. Glenview Trust Co now owns 3,968 shares of the company's stock worth $2,135,000 after buying an additional 55 shares in the last quarter. Finally, Summit Global Investments purchased a new position in Cummins in the 1st quarter valued at approximately $565,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the sale, the vice president directly owned 11,986 shares of the company's stock, valued at approximately $8,344,773.06. The trade was a 29.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Nicole Lamb-Hale sold 2,408 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the transaction, the chief accounting officer owned 14,084 shares in the company, valued at $9,652,328.56. This represents a 14.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

CMI has been the subject of several research reports. Evercore restated an "outperform" rating and issued a $845.00 price target on shares of Cummins in a research note on Monday, May 11th. Truist Financial lifted their target price on Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. UBS Group reissued a "buy" rating on shares of Cummins in a research note on Wednesday, June 17th. Argus upped their price target on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. Finally, Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $740.07.

Cummins Stock Down 1.3%

Cummins stock opened at $640.10 on Tuesday. Cummins Inc. has a 1-year low of $344.02 and a 1-year high of $737.76. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The stock has a market cap of $88.33 billion, a PE ratio of 33.22, a P/E/G ratio of 1.58 and a beta of 1.22. The stock's fifty day moving average is $675.79 and its two-hundred day moving average is $615.85.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same period in the prior year, the firm posted $5.96 EPS. The business's quarterly revenue was up 2.7% compared to the same quarter last year. On average, sell-side analysts expect that Cummins Inc. will post 29.34 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be given a dividend of $2.20 per share. The ex-dividend date is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. This is a boost from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is presently 45.67%.

Cummins 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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