Pallas Capital Advisors LLC Takes Position in Cummins Inc. $CMI

Key Points

• Pallas Capital Advisors purchased 3,343 Cummins shares valued at approximately $2.38 million in the second quarter. Institutional investors collectively own 83.46% of the company.
• Analysts maintain a 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, though 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.

Pallas Capital Advisors LLC purchased a new stake in Cummins Inc. (NYSE:CMI - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 3,343 shares of the company's stock, valued at approximately $2,384,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CMI. Northwestern Mutual Wealth Management Co. raised its stake in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after purchasing an additional 2,434,876 shares during the period. Norges Bank acquired a new position in Cummins during the fourth quarter valued at $863,441,000. Bank of New York Mellon Corp purchased a new stake in Cummins in the 2nd quarter worth about $973,198,000. Boston Partners acquired a new stake in Cummins during the 3rd quarter worth about $473,471,000. Finally, SG Americas Securities LLC grew its stake in Cummins by 257.9% during the 1st quarter. SG Americas Securities LLC now owns 736,670 shares of the company's stock valued at $396,343,000 after acquiring an additional 530,812 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Morgan Stanley increased 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 issued a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. Barclays increased their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Weiss Ratings reissued a "buy (b-)" rating on shares of Cummins in a research note on Monday, August 3rd. Finally, Wells Fargo & Company boosted their price target on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $745.64.

Cummins Trading Up 1.8%

Shares of NYSE CMI opened at $642.56 on Tuesday. The business has a 50 day simple moving average of $664.99 and a 200 day simple moving average of $628.02. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76. The stock has a market cap of $88.45 billion, a price-to-earnings ratio of 32.83, a PEG ratio of 1.50 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73.

Cummins (NYSE:CMI - Get Free Report) last issued 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). The business had revenue of $9.46 billion for 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%. Cummins's revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the business posted $6.43 EPS. On average, research analysts predict that Cummins Inc. will post 30.15 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.4%. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is 40.88%.

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.

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