SFE Investment Counsel Takes Position in Cummins Inc. $CMI

Key Points

• SFE Investment Counsel acquired 18,235 Cummins shares worth approximately $13 million, making CMI its 17th-largest holding and about 1.8% of its portfolio. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive view, with 11 Buy ratings and four Holds; Cummins has a consensus “Moderate Buy” rating and a $745.64 price target.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but missed earnings expectations with EPS of $6.73 versus $7.21 forecast. The company also raised its quarterly dividend to $2.20, implying a 1.4% yield.

SFE Investment Counsel purchased a new position in Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 18,235 shares of the company's stock, valued at approximately $13,005,000. Cummins makes up approximately 1.8% of SFE Investment Counsel's portfolio, making the stock its 17th largest holding.

Other institutional investors also recently added to or reduced their stakes in the company. Juno Financial Group LLC acquired a new position in shares of Cummins during the fourth quarter worth $883,000. Truist Financial Corp boosted its position in shares of Cummins by 4.8% in the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company's stock worth $32,671,000 after purchasing an additional 2,951 shares in the last quarter. Smith Salley Wealth Management grew its stake in Cummins by 1,381.8% during the 4th quarter. Smith Salley Wealth Management now owns 21,768 shares of the company's stock worth $11,111,000 after buying an additional 20,299 shares during the last quarter. Westfield Capital Management Co. LP purchased a new stake in Cummins in the fourth quarter valued at about $7,797,000. Finally, Kepler Cheuvreux Suisse SA purchased a new stake in Cummins in the fourth quarter valued at about $7,869,000. Institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on CMI shares. Wells Fargo & Company boosted their price target on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Citigroup boosted their target price on shares of Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Argus raised their price target on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a report on Monday, June 1st. Finally, Evercore reissued an "outperform" rating and set a $845.00 price objective on shares of Cummins in a report on Monday, May 11th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Cummins currently has a consensus rating of "Moderate Buy" and a consensus price target of $745.64.

Cummins Stock Performance

CMI opened at $631.81 on Friday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. Cummins Inc. has a 12-month low of $389.52 and a 12-month high of $737.76. The firm has a 50 day moving average of $665.58 and a two-hundred day moving average of $627.15. The firm has a market capitalization of $86.98 billion, a PE ratio of 32.28, a P/E/G ratio of 1.50 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the previous year, the company earned $6.43 EPS. The firm's revenue was up 9.4% compared to the same quarter last year. On average, analysts anticipate that Cummins Inc. will post 30.15 EPS for the current year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be issued a $2.20 dividend. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a yield of 1.4%. Cummins's dividend payout ratio is currently 40.88%.

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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

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