Strathmore Capital Advisors Inc. Makes New Investment in Cummins Inc. $CMI

Strathmore Capital Advisors Inc. purchased a new stake in Cummins Inc. (NYSE:CMI) in the second quarter, Holdings Channel reports. The institutional investor purchased 1,556 shares of the company’s stock, valued at approximately $1,028,000. Cummins comprises about 0.3% of Strathmore Capital Advisors Inc.’s portfolio, making the stock its 21st largest position.

Several other large investors also recently made changes to their positions in CMI. Activest Wealth Management grew its stake in shares of Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company’s stock worth $26,000 after purchasing an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC lifted its stake in Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock valued at $26,000 after purchasing an additional 45 shares during the last quarter. Persistent Asset Partners Ltd bought a new stake in Cummins during the second quarter worth approximately $26,000. Wellington Shields Capital Management LLC bought a new stake in Cummins during the fourth quarter worth approximately $27,000. Finally, Key Financial Inc grew its position in Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after buying an additional 20 shares during the last quarter. Institutional investors own 83.46% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on CMI. Argus upped their price target on Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a report on Monday, June 1st. JPMorgan Chase & Co. raised their price objective on Cummins from $600.00 to $725.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Evercore restated an “outperform” rating and issued a $845.00 target price on shares of Cummins in a report on Monday, May 11th. Raymond James Financial boosted their target price on Cummins from $675.00 to $745.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 26th. Finally, Morgan Stanley upped their target price on Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a report on Friday, July 17th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $745.64.

Cummins Stock Down 2.2%

CMI stock opened at $607.02 on Thursday. 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 firm has a market capitalization of $83.56 billion, a P/E ratio of 31.02, a P/E/G ratio of 1.48 and a beta of 1.24. Cummins Inc. has a 52-week low of $389.52 and a 52-week high of $737.76. The company’s 50 day simple moving average is $663.55 and its 200-day simple moving average is $628.49.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.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 business posted $6.43 EPS. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. As a group, equities research analysts anticipate that Cummins Inc. will post 30.06 EPS 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 given a $2.20 dividend. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. This is a boost from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. Cummins’s payout ratio is 40.88%.

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.