Avantax Advisory Services Inc. increased its position in Cummins Inc. (New York Stock Exchange: CMI – Get a rating) by 13.5% in the 1st quarter, according to its last filing with the Securities and Exchange Commission. The institutional investor held 3,194 shares of the company after purchasing an additional 380 shares during the quarter. Avantax Advisory Services Inc.’s holdings in Cummins were worth $655,000 when it last filed with the SEC.
Several other hedge funds and other institutional investors have also recently changed their positions in the company. State Street Corp increased its position in Cummins shares by 1.1% in the fourth quarter. State Street Corp now owns 6,751,839 shares of the company valued at $1,472,846,000 after purchasing an additional 74,697 shares last quarter. Geode Capital Management LLC increased its position in Cummins by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 2,823,165 shares of the company worth $614,408,000 after purchasing an additional 100,129 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in Cummins by 3.2% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,197,012 shares of the company worth $479,257,000 after purchasing an additional 67,205 shares last quarter. Loomis Sayles & Co. LP increased its position in Cummins by 7.3% during the 4th quarter. Loomis Sayles & Co. LP now owns 1,625,142 shares of the company worth $354,508,000 after purchasing an additional 110,024 shares last quarter. Finally, Norges Bank acquired a new position in Cummins during the 4th quarter worth approximately $302,269,000. 80.50% of the shares are currently held by institutional investors and hedge funds.
Analysts set new price targets
A number of research companies have recently published reports on the CMI. Credit Suisse Group lowered its price target on Cummins shares from $304.00 to $270.00 in a Wednesday May 4 research report. Morgan Stanley assumed coverage for Cummins shares in a research report on Thursday, June 23. They issued an “equal weight” rating and a price target of $205.00 for the company. Deutsche Bank Aktiengesellschaft lowered its price target on Cummins shares from $232.00 to $216.00 and set a “holding” rating for the company in a research report Wednesday. Citigroup reduced its price target on Cummins shares from $260.00 to $220.00 in a Tuesday, April 12 research report. Finally, Cowen reduced his price target on Cummins shares from $281.00 to $267.00 in a Thursday, July 7 research note. Four research analysts gave the stock a hold rating and five gave the stock a buy rating. According to data from MarketBeat.com, Cummins currently has a consensus rating of “Moderate Buy” and a consensus target price of $246.80.
Cummins stock up 0.8%
Shares of NYSE CMI opened at $196.36 on Friday. The company has a market capitalization of $27.71 billion, a PE ratio of 14.61, a P/E/G ratio of 1.26 and a beta of 1.01. Cummins Inc. has a 12-month low of $184.27 and a 12-month high of $247.48. The company’s fifty-day simple moving average is $200.16 and its 200-day simple moving average is $207.45. The company has a quick ratio of 1.07, a current ratio of 1.68 and a debt ratio of 0.37.
Cummin (New York Stock Exchange: CMI – Get a rating) last reported results on Tuesday, May 3. The company reported earnings per share (EPS) of $4.04 for the quarter, beating the consensus estimate of $3.55 by $0.49. The company posted revenue of $6.39 billion for the quarter, versus analyst estimates of $6.06 billion. Cummins had a net margin of 8.00% and a return on equity of 23.19%. Cummins revenue increased 4.8% year over year. In the same period a year earlier, the company had earned earnings per share of $4.04. As a group, sell-side analysts expect Cummins Inc. to post earnings per share of 17.52 for the current fiscal year.
Cummins increases its dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, September 1. Shareholders of record on Friday August 19 will receive a dividend of $1.57 per share. This is an increase from Cummins’ previous quarterly dividend of $1.45. The ex-dividend date is Thursday, August 18. This represents an annualized dividend of $6.28 and a yield of 3.20%. Cummins’ dividend payout ratio is currently 43.15%.
Insiders place their bets
In other Cummins news, Vice President Sharon R. Barner sold 4,750 shares of the company in a trade on Tuesday, May 10. The shares were sold at an average price of $205.00, for a total transaction of $973,750.00. Following the transaction, the vice president now owns 16,348 shares of the company, valued at $3,351,340. The transaction was disclosed in a document filed with the SEC, accessible via this link. In other news, Director Franklin R. Changdiaz sold 1,560 shares in a trade dated Wednesday, May 25. The shares were sold at an average price of $199.62, for a total value of $311,407.20. Following the completion of the sale, the administrator now owns 4,842 shares of the company, valued at $966,560.04. The sale was disclosed in a filing with the SEC, accessible via the SEC website. Additionally, Vice President Sharon R. Barner sold 4,750 shares in a trade dated Tuesday, May 10. The shares were sold at an average price of $205.00, for a total transaction of $973,750.00. Following the completion of the sale, the vice president now owns 16,348 shares of the company, valued at approximately $3,351,340. Disclosure of this sale can be found here. In the past 90 days, insiders have sold 11,310 shares of the company worth $2,306,857. Insiders own 1.00% of the shares of the company.
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, Timing, Components, Power Systems and New Energy. The company offers diesel and natural gas engines under the Cummins and other customer brands for heavy-duty and medium-duty trucks, buses, recreational vehicles, light-duty vehicles, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as reconditioned parts and engines.
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