Shelton Wealth Management LLC Makes New Investment in Cummins Inc. $CMI

Key Points

• Shelton Wealth Management acquired 2,519 Cummins shares worth approximately $1.3 million in the third quarter. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive outlook, with 13 Buy ratings and five Holds, producing a consensus “Moderate Buy” rating and a $708.18 price target.
• Cummins shares traded at $530.72, down from recent averages, while the company reported quarterly revenue growth of 9.4% but missed earnings expectations. It also declared a quarterly dividend of $2.20 per share, representing a 1.7% yield.

Shelton Wealth Management LLC acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 2,519 shares of the company's stock, valued at approximately $1,301,000.

Several other hedge funds also recently made changes to their positions in CMI. Valmark Advisers Inc. boosted its holdings in shares of Cummins by 1.9% in 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 in the last quarter. Guardian Partners Inc. increased its stake in shares of Cummins by 1.0% during the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock worth $852,000 after acquiring an additional 16 shares during the period. Uhlmann Price Securities LLC raised its holdings in Cummins by 2.4% during the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after purchasing an additional 17 shares in the last quarter. Legacy Financial Advisors Inc. raised its holdings in Cummins by 2.0% during the second quarter. Legacy Financial Advisors Inc. now owns 955 shares of the company's stock worth $681,000 after purchasing an additional 19 shares in the last quarter. Finally, Mengis Capital Management Inc. raised its holdings in Cummins by 0.3% during the fourth quarter. Mengis Capital Management Inc. now owns 6,463 shares of the company's stock worth $3,299,000 after purchasing an additional 20 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on CMI shares. CICC Research began coverage on shares of Cummins in a research report on Sunday, August 23rd. They issued an "outperform" rating and a $781.00 price objective for the company. Citigroup cut their target price on Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Sanford C. Bernstein reissued a "market perform" rating and issued a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Finally, Morgan Stanley lifted their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Thirteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $708.18.

Cummins Price Performance

NYSE:CMI traded down $2.01 during mid-day trading on Friday, hitting $530.72. 1,255,487 shares of the company's stock traded hands, compared to its average volume of 1,127,504. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The company has a market cap of $73.06 billion, a PE ratio of 27.12, a price-to-earnings-growth ratio of 1.41 and a beta of 1.24. The firm's 50 day simple moving average is $555.86 and its 200 day simple moving average is $619.86. Cummins Inc. has a 1 year low of $405.82 and a 1 year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company had revenue of $9.46 billion during 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 firm's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $6.43 earnings per share. Sell-side analysts expect that Cummins Inc. will post 29.98 EPS for the current year.

Cummins Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be paid a $2.20 dividend. This represents a $8.80 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, November 20th. Cummins's dividend payout ratio is presently 44.97%.

Insider Buying and Selling 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 value of $399,409.56. Following the sale, the vice president directly owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The transaction 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 Profile

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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