Kendall Capital Management Makes New $5.51 Million Investment in Cummins Inc. $CMI

Key Points

• Kendall Capital Management acquired 7,727 Cummins shares worth approximately $5.51 million in the second quarter, making CMI about 0.9% of its portfolio. Institutional investors collectively own 83.46% of the company.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings of $6.73 per share missed consensus by $0.48.
• The company increased its quarterly dividend from $2.00 to $2.20 per share, equivalent to an annualized $8.80 payout and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with a $745.64 average price target.

Kendall Capital Management purchased a new position in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 7,727 shares of the company's stock, valued at approximately $5,511,000. Cummins makes up about 0.9% of Kendall Capital Management's portfolio, making the stock its 25th biggest holding.

A number of other hedge funds have also recently made changes to their positions in CMI. BlackRock Inc. bought a new position in shares of Cummins during the 2nd quarter valued at $8,204,241,000. Northwestern Mutual Wealth Management Co. lifted its stake in Cummins by 10,317.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after purchasing an additional 2,434,876 shares during the last quarter. Norges Bank bought a new stake in Cummins in the fourth quarter worth $863,441,000. Bank of New York Mellon Corp purchased a new stake in Cummins during the second quarter valued at about $973,198,000. Finally, Boston Partners purchased a new stake in Cummins during the third quarter valued at about $473,471,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Performance

Shares of CMI stock opened at $587.87 on Friday. The firm has a market capitalization of $80.93 billion, a price-to-earnings ratio of 30.04, a PEG ratio of 1.40 and a beta of 1.24. The stock has a fifty day moving average of $660.86 and a 200 day moving average of $628.31. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS 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 company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter last year, the company posted $6.43 earnings per share. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, research analysts expect that Cummins Inc. will post 30.06 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a $2.20 dividend. The ex-dividend date of this dividend is Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.5%. Cummins's payout ratio is currently 40.88%.

Wall Street Analyst Weigh In

Several research firms have recently commented on CMI. Zacks Research downgraded Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Wells Fargo & Company raised their price target on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Truist Financial set a $894.00 price target on Cummins in a research note on Wednesday, August 5th. Robert W. Baird set a $700.00 price objective on Cummins in a research report on Wednesday, May 6th. Finally, Sanford C. Bernstein reissued a "market perform" rating and set a $700.00 price objective on shares of Cummins in a research note on Wednesday, August 5th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $745.64.

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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