Strathmore Capital Advisors Inc. Makes New $1.03 Million Investment in Cummins Inc. $CMI

Strathmore Capital Advisors Inc. bought a new stake in Cummins Inc. (NYSE:CMI) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 1,556 shares of the company’s stock, valued at approximately $1,028,000. Cummins accounts for about 0.3% of Strathmore Capital Advisors Inc.’s portfolio, making the stock its 21st largest holding.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Activest Wealth Management lifted its holdings 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 boosted its position in Cummins by 1,500.0% during the 1st 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 period. Persistent Asset Partners Ltd bought a new position in Cummins during the 2nd quarter worth $26,000. Wellington Shields Capital Management LLC acquired a new stake in Cummins in the fourth quarter worth $27,000. Finally, Key Financial Inc increased 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 period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Stock Down 2.2%

Cummins stock opened at $607.02 on Thursday. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76. The stock has a market cap of $83.56 billion, a price-to-earnings ratio of 31.02, a PEG ratio of 1.48 and a beta of 1.24. The company’s 50-day moving average price is $663.55 and its two-hundred day moving average price is $628.49. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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 company 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 company posted $6.43 earnings per share. The company’s revenue was up 9.4% on a year-over-year basis. On average, analysts expect that Cummins Inc. will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders 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 yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. This is an increase from Cummins’s previous quarterly dividend of $2.00. Cummins’s dividend payout ratio is 40.88%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Weiss Ratings raised shares of Cummins from a “buy (b-)” rating to a “buy (b)” rating in a report on Monday. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Evercore reissued an “outperform” rating and set a $845.00 target price on shares of Cummins in a research note on Monday, May 11th. Raymond James Financial upped their target price on shares of Cummins from $675.00 to $745.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 26th. Finally, Wells Fargo & Company raised their target price on Cummins from $794.00 to $874.00 and gave the company an “overweight” rating in a research report on Wednesday, June 17th. Eleven investment 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, the stock 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.