NewEdge Advisors LLC Grows Stock Position in Cummins Inc. $CMI

Key Points

• NewEdge Advisors increased its Cummins stake by 5.5% in the second quarter, bringing its holdings to 101,415 shares valued at approximately $72.3 million. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 missed analyst expectations of $7.21. The company raised its quarterly dividend to $2.20, equivalent to an annualized yield of about 1.6%.
• Analysts maintain a generally positive outlook, with an average rating of “Moderate Buy” and an average price target of $764.54, although the stock recently traded at $561.99. A Cummins vice president also sold 698 shares, reducing his position by 13.48%.

NewEdge Advisors LLC raised its holdings in shares of Cummins Inc. (NYSE:CMI - Free Report) by 5.5% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 101,415 shares of the company's stock after acquiring an additional 5,268 shares during the quarter. NewEdge Advisors LLC owned approximately 0.07% of Cummins worth $72,330,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Cedar Mountain Advisors LLC grew its position in shares of Cummins by 1,500.0% in 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. Persistent Asset Partners Ltd acquired a new position in shares of Cummins during the 2nd quarter worth approximately $26,000. Wellington Shields Capital Management LLC acquired a new position in shares of Cummins during the 4th quarter worth approximately $27,000. Key Financial Inc lifted its stake in Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after buying an additional 20 shares in the last quarter. Finally, Birchwood Financial Partners Inc. purchased a new stake in Cummins in the 4th quarter valued at approximately $28,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity at Cummins

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the transaction, the vice president directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. The trade was a 13.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.30% of the stock is currently owned by company insiders.

Cummins Stock Performance

NYSE:CMI opened at $561.99 on Wednesday. The company has a market cap of $77.36 billion, a P/E ratio of 28.72, a P/E/G ratio of 1.52 and a beta of 1.23. The firm's 50 day moving average is $626.71 and its two-hundred day moving average is $626.22. Cummins Inc. has a fifty-two week low of $390.11 and a fifty-two 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 announced its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company 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% on a year-over-year basis. During the same period in the prior year, the firm earned $6.43 earnings per share. Analysts expect that Cummins Inc. will post 30.06 EPS for the current year.

Cummins Increases Dividend

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

Analyst Upgrades and Downgrades

Several research firms have weighed in on CMI. Weiss Ratings downgraded Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, August 31st. Truist Financial set a $894.00 price objective on Cummins in a research note on Wednesday, August 5th. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Sanford C. Bernstein reissued a "market perform" rating and issued a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Finally, Morgan Stanley upped their target price on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $764.54.

Cummins Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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