Mill Capital Management LLC Acquires New Position in Cummins Inc. $CMI

Key Points

• Mill Capital Management acquired 1,665 Cummins shares during the second quarter, worth approximately $1.19 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 fell short of the $7.21 consensus forecast.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equivalent to 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.

Mill Capital Management LLC acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 1,665 shares of the company's stock, valued at approximately $1,187,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Activest Wealth Management increased its stake in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after acquiring an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC boosted its position in 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 purchasing an additional 45 shares during the last quarter. Wellington Shields Capital Management LLC purchased a new position in Cummins in the fourth quarter valued at about $27,000. Key Financial Inc increased its position in Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after purchasing an additional 20 shares during the last quarter. Finally, Birchwood Financial Partners Inc. acquired a new position in Cummins in the 4th quarter worth about $28,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Price Performance

Shares of NYSE:CMI opened at $631.81 on Friday. The stock has a market capitalization of $86.98 billion, a P/E ratio of 32.28, a P/E/G ratio of 1.50 and a beta of 1.24. The business has a 50-day moving average of $665.58 and a two-hundred day moving average of $627.15. Cummins Inc. has a fifty-two week low of $389.52 and a fifty-two week high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13.

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

Cummins Increases Dividend

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

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CMI. Raymond James Financial lifted their price target on Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday, May 26th. JPMorgan Chase & Co. increased their price objective on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Evercore reaffirmed an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Citigroup lifted their target price on shares of Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Argus boosted their target price on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $745.64.

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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