Outlook Capital Management LLC Invests $15.26 Million in Cummins Inc. $CMI

Key Points

• Outlook Capital Management purchased 21,401 Cummins shares worth approximately $15.26 million, making CMI its fourth-largest holding at 4.9% of the portfolio. 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 expectations, but earnings of $6.73 per share fell short of the $7.21 consensus estimate.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, or $8.80 annually, producing a 1.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $764.54.

Outlook Capital Management LLC purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 21,401 shares of the company's stock, valued at approximately $15,263,000. Cummins makes up about 4.9% of Outlook Capital Management LLC's holdings, making the stock its 4th largest position.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. Cedar Mountain Advisors LLC boosted its position in shares of 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 in the last quarter. Persistent Asset Partners Ltd bought a new position in Cummins in the second quarter worth $26,000. Wellington Shields Capital Management LLC bought a new position in Cummins in the fourth quarter worth $27,000. Kemnay Advisory Services Inc. purchased a new position in Cummins during the fourth quarter valued at $28,000. Finally, Birchwood Financial Partners Inc. purchased a new position in Cummins during the fourth quarter valued at $28,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insider Activity at Cummins

In related news, VP Earl Newsome sold 698 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were 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 of the company's stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.30% of the stock is currently owned by insiders.

Cummins Price Performance

CMI opened at $561.44 on Friday. The stock has a 50-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. The firm has a market cap of $77.29 billion, a PE ratio of 28.69, a P/E/G 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.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate 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 business's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period last year, the company posted $6.43 earnings per share. Sell-side analysts predict that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

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

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CMI. Raymond James Financial upped their target price on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Evercore reissued an "outperform" rating and set a $845.00 price target on shares of Cummins in a research report on Monday, May 11th. CICC Research initiated coverage on shares of Cummins in a research note on Sunday, August 23rd. They set an "outperform" rating on the stock. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Finally, Citigroup raised 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. Eleven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $764.54.

About Cummins

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source