MidFirst Bank Makes New Investment in Cummins Inc. $CMI

Key Points

• MidFirst Bank initiated a position in Cummins during the second quarter, purchasing 2,114 shares valued at approximately $1.5 million. Institutional investors collectively own 83.46% of the company.
• Analysts remain broadly positive, with 11 Buy ratings and four Holds; Cummins has a “Moderate Buy” consensus rating and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, though earnings per share of $6.73 missed estimates. The company also raised its quarterly dividend to $2.20 per share, implying a 1.4% yield.

MidFirst Bank purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 2,114 shares of the company's stock, valued at approximately $1,508,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Cummins during the 2nd quarter worth approximately $8,204,241,000. Northwestern Mutual Wealth Management Co. grew its holdings in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after buying an additional 2,434,876 shares during the last quarter. Norges Bank purchased a new position in Cummins during the fourth quarter worth $863,441,000. Bank of New York Mellon Corp acquired a new position in shares of Cummins in the second quarter worth $973,198,000. Finally, Boston Partners acquired a new position in shares of Cummins in the third quarter worth $473,471,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on CMI shares. Morgan Stanley increased their price objective on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note 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. Argus raised their price target on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Evercore reiterated an "outperform" rating and set a $845.00 price target on shares of Cummins in a report on Monday, May 11th. Finally, Raymond James Financial boosted their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research report on Tuesday, May 26th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $745.64.

Cummins Price Performance

Shares of NYSE:CMI opened at $642.56 on Tuesday. The company has a market cap of $88.45 billion, a P/E ratio of 32.83, a P/E/G ratio of 1.50 and a beta of 1.24. The business has a fifty day simple moving average of $664.99 and a 200-day simple moving average of $628.02. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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 business had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter last year, the company posted $6.43 earnings per share. The business's quarterly revenue was up 9.4% compared to the same quarter last year. Equities research analysts forecast that Cummins Inc. will post 30.15 EPS for the current year.

Cummins Increases Dividend

The business also recently disclosed 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 annualized dividend 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 payout ratio is currently 40.88%.

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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