SGL Investment Advisors Inc. Boosts Stake in Cummins Inc. $CMI

SGL Investment Advisors Inc. lifted its holdings in Cummins Inc. (NYSE:CMI) by 0.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 14,485 shares of the company’s stock after purchasing an additional 39 shares during the quarter. Cummins accounts for about 2.3% of SGL Investment Advisors Inc.’s investment portfolio, making the stock its 16th biggest holding. SGL Investment Advisors Inc.’s holdings in Cummins were worth $4,791,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the company. Shell Asset Management Co. grew its holdings in shares of Cummins by 10.3% in the second quarter. Shell Asset Management Co. now owns 5,508 shares of the company’s stock worth $1,804,000 after acquiring an additional 514 shares during the period. KLP Kapitalforvaltning AS grew its holdings in shares of Cummins by 1.5% in the second quarter. KLP Kapitalforvaltning AS now owns 116,001 shares of the company’s stock worth $37,990,000 after acquiring an additional 1,700 shares during the period. Trueblood Wealth Management LLC grew its holdings in shares of Cummins by 19.0% in the second quarter. Trueblood Wealth Management LLC now owns 2,484 shares of the company’s stock worth $813,000 after acquiring an additional 396 shares during the period. Seamount Financial Group Inc. bought a new stake in shares of Cummins in the second quarter worth $413,000. Finally, KPP Advisory Services LLC grew its holdings in Cummins by 35.9% during the second quarter. KPP Advisory Services LLC now owns 1,868 shares of the company’s stock valued at $612,000 after purchasing an additional 493 shares during the period. Institutional investors own 83.46% of the company’s stock.

Cummins Trading Up 1.6%

Shares of CMI stock opened at $439.66 on Tuesday. Cummins Inc. has a 1 year low of $260.02 and a 1 year high of $440.51. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The stock’s 50 day simple moving average is $402.11 and its two-hundred day simple moving average is $346.92. The company has a market cap of $60.58 billion, a PE ratio of 20.67, a price-to-earnings-growth ratio of 2.09 and a beta of 1.04.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating analysts’ consensus estimates of $5.21 by $1.22. The firm had revenue of $8.64 billion for the quarter, compared to analysts’ expectations of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company’s quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $5.26 earnings per share. Research analysts predict that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.8%. This is an increase from Cummins’s previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. Cummins’s payout ratio is currently 37.61%.

Insider Buying and Selling

In other Cummins news, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total transaction of $2,632,500.00. Following the sale, the chief financial officer owned 31,582 shares of the company’s stock, valued at approximately $12,790,710. This trade represents a 17.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Robert Enright sold 1,860 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the sale, the vice president directly owned 955 shares in the company, valued at $384,158.30. This trade represents a 66.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,119 shares of company stock valued at $14,159,885 over the last 90 days. 0.41% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several analysts have issued reports on CMI shares. Robert W. Baird boosted their price target on Cummins from $315.00 to $355.00 and gave the company a “neutral” rating in a report on Friday, July 11th. Wolfe Research raised Cummins from a “hold” rating to an “outperform” rating in a report on Monday, August 11th. Citigroup boosted their price target on Cummins from $425.00 to $485.00 and gave the company a “buy” rating in a report on Tuesday, September 23rd. Melius Research raised Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Cummins in a report on Saturday, September 27th. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $393.57.

About Cummins

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, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.