Klingman & Associates LLC Takes Position in Cummins Inc. (NYSE:CMI)

Key Points

• Klingman & Associates LLC invested approximately $346,000 in Cummins Inc. by acquiring 1,104 shares during the first quarter.
• Cummins recently reported an earnings per share (EPS) of $6.43, surpassing analysts' expectations of $5.21, and had a revenue of $8.64 billion for the quarter.
• The company declared an increased quarterly dividend of $2.00 per share, up from the previous $1.82, representing a 2.0% dividend yield for investors.

Klingman & Associates LLC acquired a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 1,104 shares of the company's stock, valued at approximately $346,000.

Other large investors also recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake 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 in the last quarter. Northern Trust Corp lifted its position in shares of Cummins by 15.1% in the fourth quarter. Northern Trust Corp now owns 1,883,012 shares of the company's stock worth $656,418,000 after purchasing an additional 246,807 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Cummins by 6.5% in 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 worth $566,856,000 after purchasing an additional 99,009 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Cummins by 0.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,585,802 shares of the company's stock worth $552,820,000 after purchasing an additional 12,722 shares in the last quarter. Finally, Royal Bank of Canada lifted its position in shares of Cummins by 3.7% in the fourth quarter. Royal Bank of Canada now owns 1,271,279 shares of the company's stock worth $443,169,000 after purchasing an additional 44,907 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Cummins Price Performance

Shares of NYSE CMI traded down $6.35 during midday trading on Friday, reaching $398.45. 701,253 shares of the company traded hands, compared to its average volume of 1,050,250. The firm has a market cap of $54.90 billion, a PE ratio of 18.73, a PEG ratio of 1.95 and a beta of 1.02. The stock's 50-day simple moving average is $347.51 and its 200-day simple moving average is $332.91. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $408.38. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

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, beating analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%. The business had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period in the previous year, the business posted $5.26 earnings per share. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. As a group, equities analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be issued a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. Cummins's dividend payout ratio (DPR) is presently 34.23%.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Morgan Stanley raised their price objective on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research report on Tuesday, May 6th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research report on Monday, August 11th. Barclays raised their price objective on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Robert W. Baird raised their price objective on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Finally, Wolfe Research raised shares of Cummins from a "peer perform" rating to an "outperform" rating in a research report on Monday, August 11th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, Cummins presently has an average rating of "Hold" and an average price target of $370.83.

Insiders Place Their Bets

In other Cummins news, VP Jennifer Mary Bush sold 520 shares of the business's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $388.13, for a total transaction of $201,827.60. Following the completion of the sale, the vice president directly owned 15,130 shares of the company's stock, valued at approximately $5,872,406.90. The trade was a 3.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the business's 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 transaction, the vice president owned 7,693 shares of the company's stock, valued at $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 22,872 shares of company stock valued at $9,107,105. 0.41% of the stock is owned by corporate insiders.

Cummins Company 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.