Liberty Wealth Management LLC Acquires New Holdings in Cummins Inc. (NYSE:CMI)

Key Points

• Liberty Wealth Management LLC has acquired a new stake in Cummins Inc., purchasing 15,369 shares valued at approximately $4.82 million in the first quarter.
• Cummins recently reported quarterly earnings of $5.96 EPS, exceeding analysts' expectations of $4.92, but revenue declined by 2.7% year-over-year.
• The company has increased its quarterly dividend to $2.00 per share, up from $1.82, reflecting a positive change in its shareholder returns strategy.

Liberty Wealth Management LLC bought a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 15,369 shares of the company's stock, valued at approximately $4,817,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Fiduciary Trust Co increased its stake in shares of Cummins by 1.2% during the 4th quarter. Fiduciary Trust Co now owns 2,456 shares of the company's stock worth $856,000 after purchasing an additional 28 shares during the last quarter. Bank of Jackson Hole Trust increased its stake in shares of Cummins by 1.2% during the 1st quarter. Bank of Jackson Hole Trust now owns 2,829 shares of the company's stock worth $887,000 after purchasing an additional 33 shares during the last quarter. Garrison Point Advisors LLC increased its stake in shares of Cummins by 1.1% during the 4th quarter. Garrison Point Advisors LLC now owns 3,190 shares of the company's stock worth $1,112,000 after purchasing an additional 35 shares during the last quarter. Ascent Group LLC increased its stake in shares of Cummins by 2.7% during the 4th quarter. Ascent Group LLC now owns 1,417 shares of the company's stock worth $494,000 after purchasing an additional 37 shares during the last quarter. Finally, Central Pacific Bank Trust Division increased its stake in shares of Cummins by 5.0% during the 1st quarter. Central Pacific Bank Trust Division now owns 815 shares of the company's stock worth $255,000 after purchasing an additional 39 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Cummins Stock Down 3.2%

Shares of CMI opened at $355.86 on Friday. The company has a 50-day simple moving average of $334.30 and a 200-day simple moving average of $331.07. The firm has a market capitalization of $49.02 billion, a P/E ratio of 17.70, a P/E/G ratio of 1.98 and a beta of 1.01. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 1.34. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $387.90.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Monday, May 5th. The company reported $5.96 EPS for the quarter, beating analysts' consensus estimates of $4.92 by $1.04. The business had revenue of $8.17 billion during the quarter, compared to analyst estimates of $8.22 billion. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The firm's revenue for the quarter was down 2.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $5.08 earnings per share. On average, equities research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 36.22%.

Wall Street Analyst Weigh In

CMI has been the topic of several analyst reports. Robert W. Baird increased their price target on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Evercore ISI dropped their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. JPMorgan Chase & Co. increased their price target on shares of Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 6th. UBS Group downgraded shares of Cummins from a "buy" rating to a "sell" rating and decreased their price objective for the stock from $400.00 to $240.00 in a report on Monday, April 7th. Finally, Barclays upped their price objective on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $361.92.

Insider Activity at Cummins

In other Cummins news, Director John H. Stone acquired 1,000 shares of Cummins stock in a transaction dated Friday, May 16th. The stock was bought at an average cost of $332.08 per share, with a total value of $332,080.00. Following the acquisition, the director owned 2,441 shares of the company's stock, valued at approximately $810,607.28. The trade was a 69.40% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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.

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