NBH Bank Invests $1.97 Million in Cummins Inc. $CMI

Key Points

• NBH Bank acquired 2,768 Cummins shares worth approximately $1.97 million in the second quarter, making CMI about 0.8% of its portfolio. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and four Holds; Cummins has a consensus price target of $764.54 and an overall “Moderate Buy” rating.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of estimates. The company also raised its quarterly dividend to $2.20, equivalent to an annualized yield of 1.6%.

NBH Bank acquired a new position in Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund acquired 2,768 shares of the company's stock, valued at approximately $1,974,000. Cummins accounts for approximately 0.8% of NBH Bank's portfolio, making the stock its 26th largest holding.

A number of other institutional investors also recently bought and sold shares of CMI. AlphaGrep UK Ltd bought a new position in shares of Cummins in the 2nd quarter worth approximately $951,000. MW Advisory LLC bought a new stake in Cummins during the second quarter valued at approximately $304,000. Markowski Investments bought a new stake in Cummins during the second quarter valued at approximately $356,000. Outlook Capital Management LLC purchased a new stake in Cummins during the second quarter valued at approximately $15,263,000. Finally, Raiffeisen Bank International AG raised its position in Cummins by 55.1% in the second quarter. Raiffeisen Bank International AG now owns 46,817 shares of the company's stock worth $32,355,000 after acquiring an additional 16,623 shares during the period. Institutional investors own 83.46% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Citigroup lifted their price target on shares of Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Argus lifted their target price on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research report on Monday, June 1st. Sanford C. Bernstein reissued a "market perform" rating and set a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Truist Financial set a $894.00 price target on Cummins in a research report on Wednesday, August 5th. Finally, UBS Group decreased their price objective on Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $764.54.

Cummins Stock Performance

Shares of NYSE CMI opened at $561.44 on Friday. The stock has a market cap of $77.29 billion, a PE ratio of 28.69, a price-to-earnings-growth ratio of 1.47 and a beta of 1.23. Cummins Inc. has a 1 year low of $390.11 and a 1 year high of $737.76. The firm has a fifty day moving average price of $632.30 and a 200-day moving average price of $626.49. 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 released its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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%. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the firm posted $6.43 EPS. Equities analysts anticipate that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were paid a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.6%. This is a positive change from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend was Friday, August 21st. Cummins's dividend payout ratio is currently 44.97%.

Insider Activity

In related news, VP Earl Newsome sold 698 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the sale, the vice president owned 4,479 shares in the company, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.30% of the company's stock.

Cummins 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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