Tocqueville Asset Management L.P. Takes $2.45 Million Position in Cummins Inc. $CMI

Key Points

• Tocqueville Asset Management purchased 3,431 Cummins shares worth approximately $2.45 million in the second quarter. Institutional investors collectively own 83.46% of the company.
• Cummins shares were trading down 2.5% at $593.12, despite quarterly revenue rising 9.4% year over year; earnings of $6.73 per share missed analysts’ $7.21 estimate.
• The company increased its quarterly dividend from $2.00 to $2.20 per share, equating to an annualized dividend of $8.80 and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Tocqueville Asset Management L.P. purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 3,431 shares of the company's stock, valued at approximately $2,447,000.

A number of other hedge funds have also recently added to or reduced their stakes in CMI. BlackRock Inc. acquired a new position in shares of Cummins in the 2nd quarter valued at approximately $8,204,241,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after acquiring an additional 2,434,876 shares in the last quarter. Norges Bank bought a new position in Cummins in the fourth quarter valued at approximately $863,441,000. Bank of New York Mellon Corp bought a new stake in Cummins during the second quarter worth $973,198,000. Finally, Boston Partners acquired a new stake in shares of Cummins in the 3rd quarter valued at $473,471,000. Institutional investors own 83.46% of the company's stock.

Cummins Trading Down 2.5%

NYSE:CMI opened at $593.12 on Friday. 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 firm has a market cap of $81.65 billion, a P/E ratio of 30.31, a P/E/G ratio of 1.45 and a beta of 1.24. The firm's fifty day moving average is $662.30 and its 200-day moving average is $628.59. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76.

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

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, August 21st. Cummins's dividend payout ratio (DPR) is currently 40.88%.

Analysts Set New Price Targets

A number of research firms have recently commented on CMI. Evercore reissued an "outperform" rating and issued a $845.00 target price on shares of Cummins in a report on Monday, May 11th. Argus lifted their target price on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. UBS Group reduced their target price on shares of Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a report on Wednesday, August 5th. Citigroup upped their price target on shares of 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 shares of Cummins from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $745.64.

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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