TCM Advisors LLC Makes New $1.35 Million Investment in Cummins Inc. $CMI

Key Points

• TCM Advisors LLC purchased 1,900 Cummins shares worth approximately $1.35 million during the second quarter, making Cummins its 10th-largest holding. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a generally positive view, with 12 Buy ratings and four Holds; Cummins has a consensus “Moderate Buy” rating and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, though adjusted EPS of $6.73 missed estimates. The company also raised its quarterly dividend to $2.20 per share, producing a 1.5% annualized yield.

TCM Advisors LLC purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 1,900 shares of the company's stock, valued at approximately $1,355,000. Cummins accounts for 0.1% of TCM Advisors LLC's investment portfolio, making the stock its 10th biggest holding.

A number of other hedge funds also recently made changes to their positions in the business. Cibc World Market Inc. bought a new position in Cummins in the 2nd quarter worth approximately $16,417,000. OMERS ADMINISTRATION Corp bought a new stake in Cummins during the 2nd quarter valued at $8,404,000. Osmosis Investment Management UK Ltd bought a new stake in Cummins during the 2nd quarter valued at $355,000. Sanctuary Advisors LLC acquired a new position in Cummins during the 2nd quarter worth $34,032,000. Finally, Meiji Yasuda Asset Management Co Ltd. bought a new position in shares of Cummins in the second quarter worth $13,231,000. Institutional investors own 83.46% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CMI. JPMorgan Chase & Co. raised their price target on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. UBS Group reduced their price objective on shares of Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Morgan Stanley increased their target price on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Weiss Ratings raised 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 given a Hold rating to the stock. According to MarketBeat.com, Cummins presently has a consensus rating of "Moderate Buy" and a consensus target price of $745.64.

Cummins Stock Up 0.0%

CMI stock opened at $587.87 on Monday. The firm has a market cap of $80.93 billion, a PE ratio of 30.04, a P/E/G ratio of 1.40 and a beta of 1.24. Cummins Inc. has a 12 month low of $389.52 and a 12 month high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The firm has a 50 day simple moving average of $660.86 and a 200 day simple moving average of $628.55.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter last year, the company posted $6.43 EPS. The firm's revenue was up 9.4% compared to the same quarter last year. Equities research analysts forecast that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. This is a boost from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.5%. Cummins's dividend payout ratio (DPR) is 44.97%.

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.

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