Tidal Investments LLC Buys 7,480 Shares of Cummins Inc. $CMI

Key Points

• Tidal Investments increased its Cummins stake by 35.9% in the second quarter, buying 7,480 shares to hold 28,312 shares valued at approximately $20.2 million. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 fell short of the $7.21 consensus forecast.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equal to an annualized $8.80 dividend and a 1.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $764.54.

Tidal Investments LLC lifted its position in Cummins Inc. (NYSE:CMI - Free Report) by 35.9% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 28,312 shares of the company's stock after buying an additional 7,480 shares during the quarter. Tidal Investments LLC's holdings in Cummins were worth $20,192,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Cedar Mountain Advisors LLC lifted its stake in Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after purchasing an additional 45 shares in the last quarter. Persistent Asset Partners Ltd bought a new position in shares of Cummins in the second quarter worth $26,000. Wellington Shields Capital Management LLC bought a new position in shares of Cummins in the fourth quarter worth $27,000. Key Financial Inc raised its position in shares of Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after buying an additional 20 shares in the last quarter. Finally, Birchwood Financial Partners Inc. bought a new stake in Cummins during the fourth quarter valued at $28,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Price Performance

CMI opened at $549.54 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. The stock has a market capitalization of $75.65 billion, a P/E ratio of 28.08, a PEG ratio of 1.50 and a beta of 1.23. The stock has a 50-day moving average price of $621.91 and a 200-day moving average price of $625.61. Cummins Inc. has a 12-month low of $400.72 and a 12-month high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last announced 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). The firm had revenue of $9.46 billion for 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 business's quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the business posted $6.43 earnings per share. Equities analysts predict that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were issued a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is presently 44.97%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CMI. Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Sanford C. Bernstein reissued a "market perform" rating and set a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Morgan Stanley upped their price objective on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Argus raised their target price on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Finally, UBS Group dropped their target price on shares of Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $764.54.

Insider Activity

In other news, VP Earl Newsome sold 698 shares of the company's stock in a transaction 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 completion of the sale, the vice president owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.30% of the company's stock.

Cummins Company Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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