Wealthfront Advisers LLC Makes New $12.35 Million Investment in Cummins Inc. $CMI

Key Points

• Wealthfront Advisers purchased 17,320 Cummins shares worth approximately $12.35 million, while institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of the $7.21 analyst consensus.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, or $8.80 annually, yielding about 1.4%. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Wealthfront Advisers LLC purchased a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 17,320 shares of the company's stock, valued at approximately $12,353,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Valmark Advisers Inc. raised its stake in Cummins by 1.9% in the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock worth $472,000 after acquiring an additional 16 shares during the last quarter. Guardian Partners Inc. grew its stake in Cummins by 1.0% during the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after purchasing an additional 16 shares during the last quarter. Nicolet Advisory Services LLC grew its stake in Cummins by 1.6% during the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after purchasing an additional 17 shares during the last quarter. Uhlmann Price Securities LLC increased its holdings in shares of Cummins by 2.4% in the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock valued at $386,000 after purchasing an additional 17 shares during the period. Finally, ICW Investment Advisors LLC increased its holdings in shares of Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock valued at $369,000 after purchasing an additional 18 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Stock Performance

Shares of CMI stock opened at $620.43 on Wednesday. Cummins Inc. has a 52-week low of $389.52 and a 52-week 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. The stock has a market cap of $85.41 billion, a PE ratio of 31.70, a price-to-earnings-growth ratio of 1.50 and a beta of 1.24. The business has a 50-day simple moving average of $664.02 and a 200-day simple moving average of $628.32.

Cummins (NYSE:CMI - Get Free Report) last posted its 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). The company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The firm's revenue was up 9.4% on a year-over-year basis. During the same period last year, the business earned $6.43 earnings per share. On average, equities analysts expect that Cummins Inc. will post 30.06 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed 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 represents a $8.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio is 40.88%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Morgan Stanley lifted their target price on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Zacks Research downgraded shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Barclays raised their price target on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Wells Fargo & Company lifted their price objective on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. Finally, Raymond James Financial upped their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a report on Tuesday, May 26th. Eleven analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, Cummins currently 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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