SIR Capital Management L.P. Invests $2.07 Million in Cummins Inc. $CMI

Key Points

• SIR Capital Management initiated a $2.07 million position in Cummins during the second quarter by purchasing 2,900 shares. Institutional investors collectively own 83.46% of the company, with several other funds also establishing new positions.
• Analysts maintain a generally positive outlook, with 12 Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $745.64.
• Cummins shares opened at $571.58 after declining 2.7%. Although quarterly EPS of $6.73 missed estimates, revenue rose 9.4% year over year to $9.46 billion, and the company increased its quarterly dividend to $2.20 per share.

SIR Capital Management L.P. acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 2,900 shares of the company's stock, valued at approximately $2,068,000.

A number of other hedge funds also recently modified their holdings of CMI. Legal & General Group Plc purchased a new stake in Cummins in the 2nd quarter worth about $666,635,000. The Manufacturers Life Insurance Company bought a new stake in Cummins in the second quarter worth approximately $113,045,000. Van Hulzen Asset Management LLC acquired a new position in Cummins during the second quarter worth $2,190,000. Fiduciary Financial Advisors bought a new position in shares of Cummins in the 2nd quarter valued at approximately $112,000. Finally, Manning & Napier Advisors LLC bought a new position in shares of Cummins in the second quarter valued at approximately $8,697,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on CMI shares. UBS Group cut their price objective on Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Raymond James Financial lifted their target price on shares of Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research report on Tuesday, May 26th. Morgan Stanley upped their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Citigroup lifted their price objective on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, Weiss Ratings upgraded Cummins from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, August 17th. Twelve research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $745.64.

Cummins Trading Down 2.7%

Shares of NYSE:CMI opened at $571.58 on Tuesday. The firm has a market cap of $78.68 billion, a price-to-earnings ratio of 29.21, a PEG ratio of 1.40 and a beta of 1.24. The company's fifty day simple moving average is $658.70 and its 200 day simple moving average is $628.32. Cummins Inc. has a 12 month low of $389.52 and a 12 month high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) 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 firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the previous year, the business posted $6.43 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. As a group, research analysts forecast that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors 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 yield of 1.5%. This is a boost from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. Cummins's payout ratio is currently 44.97%.

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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