Integrity Alliance LLC. Takes $1.32 Million Position in Cummins Inc. $CMI

Key Points

• Integrity Alliance LLC. has made a new investment in Cummins Inc., acquiring 4,214 shares valued at approximately $1,321,000 during the first quarter.
• The company recently increased its quarterly dividend to $2.00 per share from the previous $1.82, resulting in an annualized dividend of $8.00 and a yield of 1.9%.
• Cummins reported strong quarterly earnings, with earnings per share of $6.43 surpassing estimates, and revenue of $8.64 billion, up against analyst expectations.

Integrity Alliance LLC. purchased a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 4,214 shares of the company's stock, valued at approximately $1,321,000.

Several other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Cummins by 1.9% during the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock valued at $5,417,331,000 after buying an additional 321,823 shares during the period. Northern Trust Corp boosted its position in Cummins by 1.2% during the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock valued at $597,170,000 after buying an additional 22,202 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Cummins by 0.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock valued at $512,343,000 after buying an additional 8,487 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Cummins by 6.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock valued at $566,856,000 after buying an additional 99,009 shares during the period. Finally, Raymond James Financial Inc. boosted its position in Cummins by 152.3% during the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after buying an additional 817,384 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have issued reports on CMI. Wells Fargo & Company upgraded shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Robert W. Baird upped their price objective on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Melius Research raised 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 upped their price objective on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Finally, The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and upped their price objective for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $389.29.

Cummins Trading Up 1.0%

CMI stock traded up $4.20 during trading on Monday, reaching $414.47. The company had a trading volume of 880,953 shares, compared to its average volume of 869,160. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $415.30. The company has a market cap of $57.11 billion, a P/E ratio of 19.49, a PEG ratio of 1.98 and a beta of 1.02. The business has a 50 day moving average of $378.17 and a 200 day moving average of $337.07. 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 (NYSE:CMI - Get Free Report) last released its quarterly earnings results 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 prior year, the firm earned $5.26 earnings per share. Cummins's revenue was down 1.7% on a year-over-year basis. As a group, sell-side analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

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

Insiders Place Their Bets

In other Cummins news, Director Karen H. Quintos sold 1,307 shares of the company's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total value of $529,766.31. Following the sale, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction dated Friday, August 8th. The stock was 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 owned 7,693 shares in the company, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 26,039 shares of company stock valued at $10,385,075. Insiders own 0.41% of the company's stock.

Cummins 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.