Deutsche Bank AG Makes New Investment in Cummins Inc. $CMI

Key Points

• Deutsche Bank acquired 522,711 Cummins shares in the second quarter, valued at approximately $372.8 million and representing about 0.38% of the company. Institutional investors collectively own 83.46% of Cummins.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above expectations, but earnings per share of $6.73 missed the $7.21 consensus estimate.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equivalent to an annualized $8.80 dividend and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

Deutsche Bank AG purchased a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm purchased 522,711 shares of the company's stock, valued at approximately $372,803,000. Deutsche Bank AG owned approximately 0.38% of Cummins as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently modified their holdings of CMI. Perigon Wealth Management LLC acquired a new stake in shares of Cummins in the second quarter valued at $4,877,000. Commerzbank Aktiengesellschaft FI acquired a new position in Cummins during the second quarter worth about $1,919,000. Trust Co. of Vermont bought a new stake in Cummins in the second quarter worth about $12,140,000. Principle Wealth Partners LLC acquired a new stake in Cummins in the 2nd quarter valued at about $10,884,000. Finally, Focused Wealth Management Inc acquired a new stake in Cummins in the 2nd quarter valued at about $259,000. Institutional investors own 83.46% of the company's stock.

Cummins Stock Up 1.8%

CMI stock opened at $642.56 on Tuesday. The company's 50 day simple moving average is $664.99 and its 200-day simple moving average is $628.02. Cummins Inc. has a 52-week low of $389.52 and a 52-week high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The firm has a market capitalization of $88.45 billion, a P/E ratio of 32.83, a P/E/G 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 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 firm had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter in the previous year, the firm posted $6.43 earnings per share. The company's revenue for the quarter was up 9.4% on a year-over-year basis. As a group, equities research analysts anticipate that Cummins Inc. will post 30.15 EPS for the current year.

Cummins Increases Dividend

The company 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 is a positive change from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. Cummins's payout ratio is 40.88%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on CMI. Barclays lifted their price objective on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Citigroup raised their target price on shares of Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Morgan Stanley lifted 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 reiterated an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Finally, Argus raised their price objective on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus 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.

Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source