Cummins (NYSE:CMI) Releases Earnings Results, Beats Expectations By $0.76 EPS

Cummins (NYSE:CMI) announced its quarterly earnings results on Thursday. The company reported $5.59 EPS for the quarter, topping the consensus estimate of $4.83 by $0.76, Zacks reports. The business had revenue of $8.32 billion for the quarter, compared to analyst estimates of $7.97 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company’s quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $5.86 EPS.

Cummins Stock Performance

NYSE:CMI opened at $474.10 on Friday. 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 firm has a market cap of $65.32 billion, a PE ratio of 22.29, a P/E/G ratio of 2.05 and a beta of 1.07. The firm has a 50 day simple moving average of $420.80 and a 200-day simple moving average of $368.54. Cummins has a 1-year low of $260.02 and a 1-year high of $482.53.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, November 21st will be given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, November 21st. Cummins’s payout ratio is currently 37.61%.

Insider Activity

In related news, VP Robert Enright sold 1,860 shares of the company’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president directly owned 955 shares in the company, valued at approximately $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the firm’s stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the sale, the vice president directly owned 20,738 shares in the company, valued at approximately $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 37,949 shares of company stock valued at $15,674,705 over the last quarter. Insiders own 0.41% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Osterweis Capital Management Inc. acquired a new position in Cummins in the second quarter valued at $31,000. ICW Investment Advisors LLC purchased a new position in Cummins in the second quarter valued at approximately $225,000. Keel Point LLC acquired a new position in Cummins during the second quarter valued at approximately $227,000. Florida Financial Advisors LLC increased its position in shares of Cummins by 12.5% in the second quarter. Florida Financial Advisors LLC now owns 993 shares of the company’s stock worth $332,000 after acquiring an additional 110 shares in the last quarter. Finally, HUB Investment Partners LLC raised its stake in shares of Cummins by 22.3% in the 2nd quarter. HUB Investment Partners LLC now owns 1,521 shares of the company’s stock valued at $498,000 after acquiring an additional 277 shares during the period. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently issued reports on CMI. Citigroup lifted their price objective on Cummins from $500.00 to $530.00 and gave the stock a “buy” rating in a report on Friday. Wolfe Research raised Cummins from a “hold” rating to an “outperform” rating in a research note on Monday, August 11th. Evercore ISI reissued an “outperform” rating on shares of Cummins in a research note on Tuesday, August 19th. Robert W. Baird raised their target price on shares of Cummins from $315.00 to $355.00 and gave the company a “neutral” rating in a report on Friday, July 11th. Finally, Melius raised shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target on the stock in a report on Wednesday, September 3rd. Ten investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Cummins presently has a consensus rating of “Moderate Buy” and a consensus price target of $428.93.

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.