RB Capital Management LLC Makes New Investment in Cummins Inc. $CMI

Key Points

• RB Capital Management LLC acquired 631 shares of Cummins Inc., valued at approximately $207,000, indicating growing institutional interest in the company.
• Cummins reported a quarterly earnings per share (EPS) of $6.43, exceeding analysts' expectations and reflecting a slight revenue decrease of 1.7% year-over-year.
• The company announced a quarterly dividend increase to $2.00 per share, raising its annual dividend yield to 1.9% and reflecting a commitment to returning value to shareholders.

RB Capital Management LLC acquired a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 631 shares of the company's stock, valued at approximately $207,000.

Several other institutional investors and hedge funds have also made changes to their positions in CMI. Jacobs & Co. CA raised its position in shares of Cummins by 0.9% in the second quarter. Jacobs & Co. CA now owns 34,843 shares of the company's stock worth $11,411,000 after acquiring an additional 309 shares during the period. Central Pacific Bank Trust Division boosted its holdings in Cummins by 5.6% in the 2nd quarter. Central Pacific Bank Trust Division now owns 861 shares of the company's stock valued at $282,000 after purchasing an additional 46 shares during the last quarter. Kera Capital Partners Inc. purchased a new position in shares of Cummins during the 2nd quarter worth approximately $389,000. AG2R LA Mondiale Gestion D Actifs purchased a new position in shares of Cummins during the 1st quarter worth approximately $1,743,000. Finally, 1248 Management LLC purchased a new position in shares of Cummins during the 1st quarter worth approximately $102,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cummins

In other Cummins news, VP Robert Enright sold 1,860 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total transaction of $748,203.60. Following the completion of the sale, the vice president directly owned 955 shares in the company, valued at $384,158.30. The trade was a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 35,119 shares of company stock valued at $14,159,885 over the last quarter. Company insiders own 0.41% of the company's stock.

Cummins Trading Down 1.2%

Shares of NYSE CMI traded down $5.08 during midday trading on Friday, reaching $421.32. 231,266 shares of the stock were exchanged, compared to its average volume of 868,374. Cummins Inc. has a 52-week low of $260.02 and a 52-week high of $428.96. The stock has a 50 day moving average price of $384.90 and a 200-day moving average price of $338.94. The company has a market capitalization of $58.05 billion, a P/E ratio of 19.81, a P/E/G ratio of 1.99 and a beta of 1.02. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.21 by $1.22. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.64 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same period in the previous year, the firm earned $5.26 earnings per share. Cummins's revenue was down 1.7% compared to the same quarter last year. Equities research analysts expect that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were paid a dividend of $2.00 per share. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 1.9%. The ex-dividend date was Friday, August 22nd. Cummins's payout ratio is presently 37.61%.

Wall Street Analyst Weigh In

CMI has been the topic of a number of research reports. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Melius upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, September 3rd. Truist Financial increased their target price on shares of Cummins from $342.00 to $380.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. Finally, Melius Research upgraded shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a report on Wednesday, September 3rd. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and a consensus target price of $389.29.

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.