Relyea Zuckerberg Hanson LLC Purchases New Stake in Cummins Inc. $CMI

Key Points

• Relyea Zuckerberg Hanson LLC purchased a new stake in Cummins Inc., acquiring 640 shares valued at approximately $210,000 during the second quarter.
• Institutional investors control approximately 83.46% of Cummins’ stock, with various firms significantly increasing their holdings in the company recently.
• Cummins reported earnings of $6.43 EPS, surpassing estimates, and announced a quarterly dividend increase to $2.00 per share, reflecting a yield of 1.8%.

Relyea Zuckerberg Hanson LLC purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 640 shares of the company's stock, valued at approximately $210,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Raymond James Financial Inc. raised its position in Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock valued at $424,414,000 after purchasing an additional 817,384 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Cummins by 70.9% during the first quarter. AQR Capital Management LLC now owns 1,022,373 shares of the company's stock valued at $314,942,000 after acquiring an additional 424,294 shares in the last quarter. Nuveen LLC bought a new position in shares of Cummins during the first quarter valued at approximately $109,120,000. Vanguard Group Inc. lifted 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 acquiring an additional 321,823 shares during the period. Finally, Goldman Sachs Group Inc. boosted its holdings in Cummins by 74.2% in the first quarter. Goldman Sachs Group Inc. now owns 749,449 shares of the company's stock valued at $234,907,000 after acquiring an additional 319,277 shares in the last quarter. 83.46% of the stock is owned by institutional investors.

Cummins Stock Performance

Shares of CMI opened at $439.66 on Tuesday. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. The stock has a market cap of $60.58 billion, a P/E ratio of 20.67, a P/E/G ratio of 2.09 and a beta of 1.04. The business's 50 day moving average price is $402.11 and its 200-day moving average price is $346.92. Cummins Inc. has a 52 week low of $260.02 and a 52 week high of $440.51.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, topping the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. During the same period in the previous year, the company posted $5.26 earnings per share. The company's revenue for the quarter was down 1.7% compared to the same quarter last year. Equities research analysts anticipate that Cummins Inc. will post 22.54 earnings per share 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 given a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 1.8%. Cummins's payout ratio is currently 37.61%.

Insiders Place Their Bets

In other news, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares in the company, valued at approximately $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the sale, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. The trade was a 20.00% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 35,119 shares of company stock valued at $14,159,885. 0.41% of the stock is owned by company insiders.

Analyst Ratings Changes

Several brokerages have commented on CMI. Evercore ISI restated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Weiss Ratings reissued a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Truist Financial lifted their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research report on Monday, August 11th. Finally, Robert W. Baird lifted their price target on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Ten analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $393.57.

Cummins Company Profile

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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