Lynch Asset Management Inc. Makes New $13.59 Million Investment in Cummins Inc. $CMI

Key Points

• Lynch Asset Management acquired 19,050 Cummins shares worth approximately $13.59 million, making the stock its fifth-largest holding and 3.7% of its portfolio. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly EPS of $6.73, below the $7.21 analyst consensus, while revenue rose 9.4% year over year to $9.46 billion, exceeding expectations.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, implying an annualized dividend of $8.80 and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Lynch Asset Management Inc. acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 19,050 shares of the company's stock, valued at approximately $13,587,000. Cummins comprises approximately 3.7% of Lynch Asset Management Inc.'s investment portfolio, making the stock its 5th biggest holding.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Bank of New York Mellon Corp acquired a new stake in shares of Cummins in the 2nd quarter worth $973,198,000. Leeward Financial Partners LLC acquired a new position in shares of Cummins during the second quarter worth about $4,823,000. Focus Partners Advisor Solutions LLC purchased a new position in Cummins during the second quarter worth about $3,710,000. State of Wyoming acquired a new stake in Cummins in the second quarter valued at about $242,000. Finally, ABN AMRO Bank N.V. acquired a new stake in Cummins in the second quarter valued at about $32,112,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Trading Up 0.1%

Shares of CMI opened at $631.81 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. The firm has a market capitalization of $86.98 billion, a P/E ratio of 32.28, a price-to-earnings-growth ratio of 1.50 and a beta of 1.24. The stock's fifty day simple moving average is $665.58 and its 200 day simple moving average is $627.56. Cummins Inc. has a twelve month low of $389.52 and a twelve month high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The firm had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins's revenue was up 9.4% on a year-over-year basis. During the same period last year, the firm posted $6.43 EPS. On average, equities research analysts forecast that Cummins Inc. will post 30.15 earnings per share for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is presently 40.88%.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Evercore reiterated an "outperform" rating and set a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Robert W. Baird set a $700.00 price target on Cummins in a research note on Wednesday, May 6th. Truist Financial set a $894.00 price objective on shares of Cummins in a research note on Wednesday, August 5th. Wells Fargo & Company upped their target price on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. Finally, JPMorgan Chase & Co. upped their target price on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Eleven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $745.64.

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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