Lynch Asset Management Inc. Buys New Stake in Cummins Inc. $CMI

Lynch Asset Management Inc. purchased a new position in shares of Cummins Inc. (NYSE:CMI) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 19,050 shares of the company’s stock, valued at approximately $13,587,000. Cummins accounts for approximately 3.7% of Lynch Asset Management Inc.’s investment portfolio, making the stock its 5th largest position.

Several other large investors have also recently added to or reduced their stakes in CMI. Juno Financial Group LLC purchased a new position in shares of Cummins in the fourth quarter valued at $883,000. Truist Financial Corp increased its stake in Cummins by 4.8% during the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company’s stock worth $32,671,000 after buying an additional 2,951 shares during the period. Smith Salley Wealth Management lifted its holdings in Cummins by 1,381.8% in the 4th quarter. Smith Salley Wealth Management now owns 21,768 shares of the company’s stock worth $11,111,000 after buying an additional 20,299 shares in the last quarter. Kepler Cheuvreux Suisse SA purchased a new position in Cummins in the 4th quarter valued at about $7,869,000. Finally, Westfield Capital Management Co. LP purchased a new position in Cummins in the 4th quarter valued at about $7,797,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Price Performance

CMI opened at $631.81 on Monday. The company has a market capitalization of $86.98 billion, a P/E ratio of 32.28, a PEG ratio of 1.50 and a beta of 1.24. The company has a 50-day moving average of $665.58 and a 200-day moving average of $627.56. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. Cummins Inc. has a 1-year low of $389.52 and a 1-year high of $737.76.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $9.33 billion. During the same period in the previous year, the business posted $6.43 EPS. The business’s revenue for the quarter was up 9.4% on a year-over-year basis. Equities analysts expect that Cummins Inc. will post 30.15 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a dividend of $2.20 per share. 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 currently 40.88%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on CMI shares. Barclays lifted their target price on Cummins from $610.00 to $760.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Evercore reissued an “outperform” rating and issued a $845.00 price target on shares of Cummins in a report on Monday, May 11th. Truist Financial set a $894.00 price objective on Cummins in a research note on Wednesday, August 5th. Wells Fargo & Company lifted their price objective on Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Finally, Citigroup upped their target price on Cummins from $770.00 to $790.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Cummins currently has an average rating of “Moderate Buy” and an average target price of $745.64.

Cummins Company Profile

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.