Korea Investment CORP Invests $92.81 Million in Cummins Inc. $CMI

Key Points

• Korea Investment Corp. acquired 130,133 Cummins shares during the second quarter, valued at approximately $92.8 million and representing a 0.09% stake. Institutional investors and hedge funds collectively own 83.46% of the company.
• Cummins reported quarterly earnings of $6.73 per share, missing the $7.21 consensus estimate, while revenue rose 9.4% year over year to $9.46 billion. Shares opened at $587.87, down from their 50-day and 200-day moving averages.
• The company raised its quarterly dividend from $2.00 to $2.20, equivalent to an annualized $8.80 payout and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $745.64.

Korea Investment CORP acquired a new position in Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 130,133 shares of the company's stock, valued at approximately $92,812,000. Korea Investment CORP owned 0.09% of Cummins as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Truist Financial Corp increased its stake in shares of Cummins by 4.8% during the fourth quarter. Truist Financial Corp now owns 64,005 shares of the company's stock valued at $32,671,000 after acquiring an additional 2,951 shares during the period. Kepler Cheuvreux Suisse SA bought a new position in Cummins during the 4th quarter valued at $7,869,000. Westfield Capital Management Co. LP acquired a new position in shares of Cummins during the 4th quarter valued at $7,797,000. Comprehensive Financial Consultants Institutional Inc. increased its position in shares of Cummins by 643.0% during the 4th quarter. Comprehensive Financial Consultants Institutional Inc. now owns 7,311 shares of the company's stock valued at $3,732,000 after purchasing an additional 6,327 shares during the period. Finally, Nomura Asset Management Co. Ltd. lifted its holdings in shares of Cummins by 26.9% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 113,648 shares of the company's stock valued at $58,012,000 after buying an additional 24,080 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Trading Down 0.9%

Shares of CMI opened at $587.87 on Friday. The business's 50-day moving average price is $660.86 and its 200 day moving average price is $628.31. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $80.93 billion, a P/E ratio of 30.04, a P/E/G ratio of 1.41 and a beta of 1.24. Cummins Inc. has a 1-year low of $389.52 and a 1-year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The firm had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins's quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the company posted $6.43 earnings per share. Analysts expect that Cummins Inc. will post 30.06 earnings per share 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 paid a $2.20 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a yield of 1.5%. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is 40.88%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Argus raised their target price on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Evercore reissued an "outperform" rating and issued a $845.00 price target on shares of Cummins in a report on Monday, May 11th. Zacks Research lowered shares of Cummins from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Barclays boosted their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings raised shares of Cummins from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price 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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