Citizens Financial Group Inc. RI Makes New Investment in Cummins Inc. $CMI

Key Points

• Citizens Financial Group purchased 38,369 shares of Cummins worth approximately $27.4 million during the second quarter. Institutional investors and hedge funds collectively own 83.46% of Cummins.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $745.64.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year, but earnings per share of $6.73 fell short of estimates. The company also raised its quarterly dividend to $2.20 per share, implying a 1.4% yield.

Citizens Financial Group Inc. RI purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 38,369 shares of the company's stock, valued at approximately $27,366,000.

Several other hedge funds also recently added to or reduced their stakes in the stock. Texas Capital Bank Wealth Management Services Inc acquired a new stake in shares of Cummins in the 2nd quarter valued at about $326,000. UNIVEST FINANCIAL Corp bought a new stake in Cummins in the second quarter valued at about $316,000. MidFirst Bank acquired a new stake in Cummins during the second quarter valued at approximately $1,508,000. BlackRock Inc. bought a new position in Cummins during the 2nd quarter worth approximately $8,204,241,000. Finally, Occidental Asset Management LLC acquired a new position in shares of Cummins in the 2nd quarter worth approximately $8,325,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

CMI has been the topic of several research analyst reports. Raymond James Financial raised their price objective on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 26th. Morgan Stanley raised their price target on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Evercore reaffirmed an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. UBS Group dropped their price objective on shares of Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Cummins in a research note on Monday, August 3rd. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Cummins has an average rating of "Moderate Buy" and an average target price of $745.64.

Cummins Price Performance

Shares of CMI opened at $642.56 on Tuesday. Cummins Inc. has a one year low of $389.52 and a one year high of $737.76. The stock's fifty day moving average is $664.99 and its 200-day moving average is $628.02. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The firm has a market capitalization of $88.45 billion, a price-to-earnings ratio of 32.83, a price-to-earnings-growth ratio of 1.50 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company's revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the business earned $6.43 earnings per share. Equities analysts anticipate that Cummins Inc. will post 30.15 EPS for the current year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be given a dividend of $2.20 per share. 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. The ex-dividend date of this dividend is Friday, August 21st. Cummins's payout ratio is presently 40.88%.

About Cummins

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.

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