MFG Wealth Management Inc. Invests $1.57 Million in Cummins Inc. $CMI

Key Points

• MFG Wealth Management purchased 2,198 Cummins shares worth approximately $1.57 million in the second quarter. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive view, with 11 Buy ratings and four Holds; Cummins has a “Moderate Buy” consensus and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, though EPS of $6.73 fell short of estimates. The company also raised its quarterly dividend to $2.20 per share, resulting in a 1.4% yield.

MFG Wealth Management Inc. purchased a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor purchased 2,198 shares of the company's stock, valued at approximately $1,568,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Activest Wealth Management lifted its stake in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC boosted its position in shares of Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares during the period. Wellington Shields Capital Management LLC bought a new position in shares of Cummins during the fourth quarter valued at approximately $27,000. Key Financial Inc raised its holdings in shares of Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after buying an additional 20 shares during the period. Finally, Birchwood Financial Partners Inc. purchased a new stake in shares of Cummins in the fourth quarter worth approximately $28,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CMI. Argus boosted their price objective on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a report on Monday, June 1st. Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Morgan Stanley lifted their target price on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Barclays boosted their target price on shares of Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, Raymond James Financial upped their price target on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a report on Tuesday, May 26th. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Cummins has an average rating of "Moderate Buy" and an average price target of $745.64.

Cummins Stock Up 0.0%

Shares of NYSE CMI opened at $644.21 on Friday. Cummins Inc. has a 52-week low of $383.90 and a 52-week high of $737.76. The firm has a market capitalization of $88.68 billion, a price-to-earnings ratio of 32.92, a PEG ratio of 1.57 and a beta of 1.24. The stock has a 50 day moving average price of $668.83 and a 200 day moving average price of $625.16. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.11 and a current ratio of 1.73.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The firm had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter in the previous year, the business earned $6.43 earnings per share. The company's revenue for the quarter was up 9.4% compared to the same quarter last year. Sell-side analysts expect that Cummins Inc. will post 29.42 earnings per share for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, August 21st. Cummins's payout ratio is 41.52%.

Insider Transactions at Cummins

In other Cummins news, VP Jennifer Mary Bush sold 5,000 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the transaction, the vice president directly owned 11,986 shares in the company, valued at $8,344,773.06. This represents a 29.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Bonnie J. Fetch sold 652 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $700.19, for a total transaction of $456,523.88. Following the transaction, the executive vice president directly owned 11,679 shares in the company, valued at $8,177,519.01. This trade represents a 5.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 7,690 shares of company stock valued at $5,360,654 over the last three months. 0.30% of the stock is currently owned by corporate insiders.

Cummins Company 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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