Western Wealth Management LLC Increases Stock Holdings in Cummins Inc. $CMI

Key Points

• Western Wealth Management increased its Cummins stake by 310.9% in the first quarter, ending with 2,704 shares valued at approximately $1.46 million. Institutional investors collectively own 83.46% of the company.
• 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, implying 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.

Western Wealth Management LLC lifted its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 310.9% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 2,704 shares of the company's stock after buying an additional 2,046 shares during the quarter. Western Wealth Management LLC's holdings in Cummins were worth $1,455,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Activest Wealth Management grew its position in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock valued at $26,000 after purchasing an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC raised its position in shares of Cummins by 1,500.0% during 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 during the last quarter. Wellington Shields Capital Management LLC purchased a new stake in Cummins in the 4th quarter valued at approximately $27,000. Key Financial Inc lifted its stake in Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after buying an additional 20 shares in the last quarter. Finally, Birchwood Financial Partners Inc. purchased a new position in Cummins during the fourth quarter worth $28,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Performance

Shares of NYSE:CMI opened at $638.07 on Thursday. The firm has a market capitalization of $87.84 billion, a PE ratio of 32.60, a P/E/G ratio of 1.50 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The business has a 50-day moving average of $666.90 and a two-hundred day moving average of $626.70. Cummins Inc. has a 12 month low of $389.52 and a 12 month high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released 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). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. During the same period in the prior year, the firm earned $6.43 earnings per share. The business's revenue for the quarter was up 9.4% on a year-over-year basis. As a group, research analysts forecast that Cummins Inc. will post 30.15 earnings per share for the current year.

Cummins Increases Dividend

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

Analyst Upgrades and Downgrades

CMI has been the subject of a number of analyst reports. Morgan Stanley boosted their price target on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Raymond James Financial lifted their price objective on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. UBS Group cut their target price on shares of Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a research note on Wednesday, August 5th. Citigroup upped their target price on shares of Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Finally, Wells Fargo & Company raised their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Cummins currently has an average rating of "Moderate Buy" and an average price target 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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