Pure Financial Advisors LLC Makes New $247,000 Investment in Cummins Inc. $CMI

Key Points

• Pure Financial Advisors LLC has made a new investment of $247,000 in Cummins Inc., acquiring 754 shares during the second quarter.
• Several institutional investors, including Vanguard Group Inc. and Raymond James Financial Inc., have increased their stakes in Cummins Inc. recently, indicating strong interest in the company.
• The company declared a quarterly dividend of $2.00 per share, up from the previous dividend of $1.82, reflecting positive financial performance.

Pure Financial Advisors LLC acquired a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 754 shares of the company's stock, valued at approximately $247,000.

A number of other large investors also recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Cummins by 1.9% in the first quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after buying an additional 321,823 shares in the last quarter. Northern Trust Corp boosted its stake in Cummins by 1.2% in the first quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after buying an additional 22,202 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Cummins by 0.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock worth $512,343,000 after buying an additional 8,487 shares in the last quarter. Raymond James Financial Inc. boosted its stake in Cummins by 152.3% in the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after buying an additional 817,384 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Cummins by 11.6% in the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after buying an additional 126,362 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. This represents a 38.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director directly owned 5,227 shares of the company's stock, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 35,119 shares of company stock valued at $14,159,885 over the last 90 days. 0.41% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on CMI. Robert W. Baird increased their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, September 3rd. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Melius raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a research report on Wednesday, September 3rd. Finally, Evercore ISI restated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Ten research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $393.57.

Cummins Trading Up 0.1%

NYSE:CMI opened at $432.87 on Friday. The company has a 50-day moving average price of $400.74 and a 200-day moving average price of $345.95. The stock has a market cap of $59.65 billion, a price-to-earnings ratio of 20.35, a P/E/G ratio of 2.09 and a beta of 1.04. 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 12 month low of $260.02 and a 12 month high of $437.66.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue was down 1.7% on a year-over-year basis. During the same period in the prior year, the firm earned $5.26 earnings per share. Equities analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were given a dividend of $2.00 per share. This is a boost from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, August 22nd. Cummins's dividend payout ratio is presently 37.61%.

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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