NovaPoint Capital LLC Buys 827 Shares of Cummins Inc. $CMI

Key Points

• NovaPoint Capital LLC increased its stake in Cummins Inc. by 6.7%, owning a total of 13,095 shares worth approximately $4.29 million following the purchase of 827 additional shares in the second quarter.
• Cummins reported $6.43 earnings per share for the last quarter, surpassing analysts' expectations of $5.21 and showcasing a revenue of $8.64 billion, despite a 1.7% decline compared to the previous year.
• The company recently announced a quarterly dividend of $2.00 per share, marking an increase from the previous $1.82, with an annualized dividend yield of 1.9% and a payout ratio of 37.61%.

NovaPoint Capital LLC boosted its stake in Cummins Inc. (NYSE:CMI - Free Report) by 6.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 13,095 shares of the company's stock after purchasing an additional 827 shares during the quarter. NovaPoint Capital LLC's holdings in Cummins were worth $4,289,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also added to or reduced their stakes in the stock. Cove Private Wealth LLC bought a new position in Cummins in the 2nd quarter worth about $348,000. FCG Investment Co bought a new position in Cummins in the 2nd quarter worth about $1,178,000. EdgeRock Capital LLC bought a new position in Cummins in the 2nd quarter worth about $455,000. Patron Partners LLC boosted its stake in Cummins by 4.5% in the 2nd quarter. Patron Partners LLC now owns 2,553 shares of the company's stock worth $836,000 after purchasing an additional 109 shares during the period. Finally, MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH bought a new position in Cummins in the 2nd quarter worth about $153,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

Shares of NYSE CMI opened at $418.59 on Friday. The stock has a market cap of $57.68 billion, a price-to-earnings ratio of 19.68, a P/E/G ratio of 2.00 and a beta of 1.02. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 1-year low of $260.02 and a 1-year high of $432.50. The stock's 50-day moving average is $394.06 and its 200 day moving average is $342.25.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.Cummins's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period last year, the firm posted $5.26 EPS. On average, sell-side analysts anticipate that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is 37.61%.

Analyst Upgrades and Downgrades

Several research analysts have commented on CMI shares. Barclays raised their target price on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a report on Wednesday, September 3rd. Wells Fargo & Company raised Cummins to an "overweight" rating in a report on Monday, August 11th. Finally, Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a report on Wednesday, September 3rd. Nine equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $393.57.

Insider Activity at Cummins

In related news, VP Amy Rochelle Davis sold 5,002 shares of the firm's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company's stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Robert Enright sold 1,860 shares of Cummins stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president directly owned 955 shares in the company, valued at $384,158.30. This trade represents a 66.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 35,119 shares of company stock worth $14,159,885 in the last quarter. 0.41% of the stock is owned by company insiders.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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