Wedge Capital Management L L P NC Sells 1,802 Shares of Cummins Inc. $CMI

Key Points

• Wedge Capital Management cut its Cummins stake by 8.4%, selling 1,802 shares and retaining 19,656 shares valued at approximately $14 million. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, exceeding estimates, while adjusted EPS of $6.73 fell short of the $7.21 consensus. Revenue increased 9.4% year over year.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, representing an annualized dividend of $8.80 and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Wedge Capital Management L L P NC reduced its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 8.4% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,656 shares of the company's stock after selling 1,802 shares during the period. Wedge Capital Management L L P NC's holdings in Cummins were worth $14,019,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in CMI. Juno Financial Group LLC bought a new position in Cummins in the 4th quarter worth $883,000. Truist Financial Corp increased its stake in shares of Cummins by 4.8% in the fourth quarter. Truist Financial Corp now owns 64,005 shares of the company's stock worth $32,671,000 after purchasing an additional 2,951 shares during the period. Smith Salley Wealth Management lifted its position in shares of Cummins by 1,381.8% during the 4th quarter. Smith Salley Wealth Management now owns 21,768 shares of the company's stock worth $11,111,000 after purchasing an additional 20,299 shares during the last quarter. Westfield Capital Management Co. LP bought a new stake in Cummins during the 4th quarter valued at approximately $7,797,000. Finally, Kepler Cheuvreux Suisse SA bought a new position in Cummins in the 4th quarter worth approximately $7,869,000. 83.46% of the stock is owned by institutional investors.

Cummins Trading Up 0.8%

Shares of CMI opened at $638.07 on Thursday. 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 cap of $87.84 billion, a PE ratio of 32.60, a PEG ratio of 1.50 and a beta of 1.24. Cummins Inc. has a 1 year low of $389.52 and a 1 year high of $737.76. The stock has a 50 day simple moving average of $666.90 and a 200-day simple moving average of $626.70.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (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 business's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $6.43 earnings per share. On average, sell-side analysts predict that Cummins Inc. will post 30.15 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a dividend of $2.20 per share. This is an increase from Cummins's previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.4%. Cummins's dividend payout ratio is 40.88%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Robert W. Baird set a $700.00 target price on shares of Cummins in a research note on Wednesday, May 6th. Morgan Stanley boosted their price objective on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Argus lifted their target price on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Wells Fargo & Company boosted their price target on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. Finally, Barclays upped their price target on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $745.64.

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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