Cummins Inc. (CMI) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS
Cummins Inc. (NYSE:CMI) released its earnings results on Tuesday, August 1st. The company reported $2.53 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $2.58 by $0.05, MarketWatch Earnings reports. The business had revenue of $5.08 billion for the quarter, compared to analysts’ expectations of $4.80 billion. Cummins had a net margin of 8.10% and a return on equity of 20.67%. The business’s quarterly revenue was up 12.1% compared to the same quarter last year. During the same quarter last year, the company posted $2.40 earnings per share.
Shares of Cummins (CMI) traded down 0.13% during midday trading on Tuesday, reaching $159.82. The company’s stock had a trading volume of 1,294,751 shares. Cummins has a 52-week low of $116.03 and a 52-week high of $170.68. The company has a market capitalization of $26.69 billion, a price-to-earnings ratio of 18.06 and a beta of 1.09. The stock has a 50 day moving average price of $163.10 and a 200-day moving average price of $154.60.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 1st. Shareholders of record on Friday, August 18th will be given a $1.08 dividend. The ex-dividend date of this dividend is Wednesday, August 16th. This is a positive change from Cummins’s previous quarterly dividend of $1.03. This represents a $4.32 annualized dividend and a yield of 2.70%. Cummins’s dividend payout ratio (DPR) is currently 46.28%.
Several research firms have recently commented on CMI. Stifel Nicolaus increased their target price on Cummins from $160.00 to $168.00 and gave the company a “hold” rating in a research note on Wednesday, August 2nd. Royal Bank Of Canada reiterated a “hold” rating and set a $166.00 target price on shares of Cummins in a research note on Wednesday, July 12th. Zacks Investment Research cut Cummins from a “buy” rating to a “hold” rating in a research note on Wednesday, July 12th. Seaport Global Securities reiterated a “neutral” rating on shares of Cummins in a research note on Tuesday, July 4th. Finally, Jefferies Group LLC reiterated a “hold” rating and set a $160.00 target price (up from $150.00) on shares of Cummins in a research note on Tuesday, May 2nd. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and seven have issued a buy rating to the company’s stock. Cummins currently has an average rating of “Hold” and an average price target of $154.33.
In related news, Director Alexis M. Herman sold 1,300 shares of the firm’s stock in a transaction that occurred on Wednesday, May 10th. The stock was sold at an average price of $159.16, for a total transaction of $206,908.00. Following the completion of the transaction, the director now owns 29,656 shares in the company, valued at approximately $4,720,048.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Pat Ward sold 5,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 25th. The stock was sold at an average price of $169.00, for a total value of $845,000.00. Following the transaction, the chief financial officer now owns 245 shares of the company’s stock, valued at approximately $41,405. The disclosure for this sale can be found here. Insiders have sold a total of 60,636 shares of company stock valued at $10,000,575 in the last 90 days. 0.62% of the stock is owned by corporate insiders.
Several institutional investors have recently bought and sold shares of CMI. OMERS ADMINISTRATION Corp bought a new position in Cummins during the second quarter valued at approximately $1,476,000. Pacer Advisors Inc. increased its position in Cummins by 8.1% in the second quarter. Pacer Advisors Inc. now owns 3,874 shares of the company’s stock valued at $628,000 after buying an additional 290 shares during the period. Utah Retirement Systems increased its position in Cummins by 0.7% in the second quarter. Utah Retirement Systems now owns 29,099 shares of the company’s stock valued at $4,720,000 after buying an additional 200 shares during the period. Mitsubishi UFJ Trust & Banking Corp increased its position in Cummins by 7.7% in the second quarter. Mitsubishi UFJ Trust & Banking Corp now owns 353,540 shares of the company’s stock valued at $57,351,000 after buying an additional 25,298 shares during the period. Finally, Fjarde AP Fonden Fourth Swedish National Pension Fund increased its position in Cummins by 22.3% in the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 40,076 shares of the company’s stock valued at $6,501,000 after buying an additional 7,301 shares during the period. Institutional investors and hedge funds own 80.34% of the company’s stock.
Cummins Company Profile
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company’s segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.
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