PCM Encore LLC Makes New $1.49 Million Investment in Cummins Inc. $CMI

Key Points

• PCM Encore LLC purchased 2,086 shares of Cummins during the second quarter, valued at approximately $1.49 million. 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 raised its quarterly dividend from $2.00 to $2.20 per share, equivalent to an annualized dividend of $8.80 and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $745.64.

PCM Encore LLC acquired a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 2,086 shares of the company's stock, valued at approximately $1,488,000.

Several other institutional investors have also recently made changes to their positions in CMI. Brighton Jones LLC lifted its stake in shares of Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after purchasing an additional 83 shares during the period. Intech Investment Management LLC grew its stake in Cummins by 40.8% in the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock worth $1,240,000 after purchasing an additional 1,146 shares during the period. Treasurer of the State of North Carolina grew its stake in Cummins by 2.8% in the second quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock worth $21,055,000 after purchasing an additional 1,759 shares during the period. ICW Investment Advisors LLC bought a new position in Cummins in the second quarter worth $225,000. Finally, Osterweis Capital Management Inc. purchased a new position in Cummins during the second quarter valued at $31,000. Institutional investors own 83.46% of the company's stock.

Cummins Price Performance

CMI opened at $593.12 on Friday. The stock has a 50-day moving average price of $662.30 and a 200-day moving average price of $628.59. 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 cap of $81.65 billion, a PE ratio of 30.31, a P/E/G ratio of 1.45 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 announced 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). 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%. The business's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period last year, the company posted $6.43 earnings per share. Sell-side analysts predict that Cummins Inc. will post 30.06 earnings per share for the current fiscal 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 issued a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's dividend payout ratio (DPR) is presently 40.88%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Evercore reiterated an "outperform" rating and issued a $845.00 price target on shares of Cummins in a research note on Monday, May 11th. Citigroup lifted their price target on shares of Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Robert W. Baird set a $700.00 price objective on shares of Cummins in a research note on Wednesday, May 6th. Finally, Truist Financial set a $894.00 price objective on shares of Cummins in a report 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's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target 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.

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