Two Point Capital Management Inc. Takes $12.68 Million Position in Cummins Inc. $CMI

Key Points

• Two Point Capital Management Inc. has taken a significant $12.68 million position in Cummins Inc., acquiring 38,721 shares, which represents 5.4% of their investment portfolio.
• Several large institutional investors have increased their holdings in Cummins, showing a growing confidence in the company’s prospects, with 83.46% of shares owned by institutional investors.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, raising its annualized dividend to $8.00, reflecting a solid dividend yield of 1.8%.

Two Point Capital Management Inc. acquired a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 38,721 shares of the company's stock, valued at approximately $12,681,000. Cummins makes up 5.4% of Two Point Capital Management Inc.'s portfolio, making the stock its 7th largest holding.

A number of other large investors have also recently added to or reduced their stakes in CMI. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its position in shares of Cummins by 10.1% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 35,862 shares of the company's stock valued at $11,745,000 after purchasing an additional 3,286 shares during the period. River Street Advisors LLC grew its stake in Cummins by 4.8% in the 2nd quarter. River Street Advisors LLC now owns 6,679 shares of the company's stock valued at $2,187,000 after buying an additional 306 shares during the last quarter. Hilltop National Bank acquired a new position in Cummins in the 2nd quarter valued at $100,000. OLD Second National Bank of Aurora raised its holdings in Cummins by 5.5% in the 2nd quarter. OLD Second National Bank of Aurora now owns 16,568 shares of the company's stock worth $5,426,000 after acquiring an additional 865 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. lifted its position in Cummins by 33.3% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 28,614 shares of the company's stock worth $9,371,000 after acquiring an additional 7,151 shares during the last quarter. Institutional investors own 83.46% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on CMI shares. Barclays lifted their price objective on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Robert W. Baird increased their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Evercore ISI restated an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Citigroup upped their target price on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a research note on Tuesday, September 23rd. Finally, Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Nine equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $393.57.

Cummins Trading Up 1.9%

Shares of CMI stock opened at $432.81 on Friday. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The firm has a fifty day moving average of $399.47 and a 200-day moving average of $345.06. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $433.00. The stock has a market cap of $59.64 billion, a price-to-earnings ratio of 20.35, a P/E/G ratio of 2.05 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.26 earnings per share. On average, equities research analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, August 22nd. This is a boost from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 37.61%.

Insiders Place Their Bets

In other news, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president owned 7,693 shares in the company, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the sale, the director owned 5,227 shares of the company's stock, valued at $2,118,659.91. This trade represents a 20.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,119 shares of company stock worth $14,159,885 over the last quarter. Corporate insiders own 0.41% of the company's stock.

Cummins Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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