Plato Investment Management Ltd Makes New Investment in Cummins Inc. $CMI

Key Points

• Plato Investment Management bought 5,203 shares of Cummins in the second quarter, valued at approximately $3.69 million. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a favorable outlook, with 11 Buy ratings and four Holds producing a consensus “Moderate Buy” rating and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, although adjusted earnings of $6.73 per share missed estimates. The company also raised its quarterly dividend to $2.20 per share, equivalent to a 1.4% yield.

Plato Investment Management Ltd bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 5,203 shares of the company's stock, valued at approximately $3,689,000.

Other large investors also recently bought and sold shares of the company. Valmark Advisers Inc. boosted its holdings in shares of Cummins by 1.9% during the first quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock valued at $472,000 after acquiring an additional 16 shares during the period. Guardian Partners Inc. raised its stake in shares of Cummins by 1.0% in the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock worth $852,000 after buying an additional 16 shares in the last quarter. Nicolet Advisory Services LLC raised its holdings in shares of Cummins by 1.6% in the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock worth $619,000 after purchasing an additional 17 shares in the last quarter. Uhlmann Price Securities LLC lifted its holdings in shares of Cummins by 2.4% during the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock valued at $386,000 after purchasing an additional 17 shares during the last quarter. Finally, ICW Investment Advisors LLC boosted its stake in Cummins by 2.6% in the 4th quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after purchasing an additional 18 shares during the period. Institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CMI. Argus upped their target price on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price objective on shares of Cummins in a research note on Wednesday, August 5th. Barclays lifted their price target on Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Citigroup increased 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, UBS Group reduced their price objective on shares of Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $745.64.

Cummins Trading Up 0.1%

CMI opened at $631.81 on Monday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The firm has a 50-day moving average price of $665.58 and a two-hundred day moving average price of $627.56. Cummins Inc. has a 1-year low of $389.52 and a 1-year high of $737.76. The stock has a market capitalization of $86.98 billion, a PE ratio of 32.28, a PEG ratio of 1.50 and a beta of 1.24.

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 analysts' consensus estimates of $7.21 by ($0.48). The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate 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 quarter in the previous year, the business posted $6.43 earnings per share. As a group, equities analysts anticipate that Cummins Inc. will post 30.15 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm 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. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is presently 40.88%.

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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