Stock Markets
Cummins secures $75 million for electric vehicle tech
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COLUMBUS, Ind. – Cummins Inc . (NYSE: NYSE:), a global power leader, has announced a significant expansion in its electric vehicle (EV) capabilities with a $150 million investment plan. The company will convert an existing engine plant in Columbus, Indiana, to produce battery electric vehicle (BEV) components, supported by a $75 million federal grant, the largest ever received by Cummins.
The investment will be matched by Cummins, totaling $150 million, which will go towards revamping approximately 360,000 square feet of the Columbus Engine Plant (CEP). This initiative is expected to add around 250 full-time jobs, offering current employees opportunities to transition into these new roles over time.
The grant, part of the Inflation Reduction Act appropriations, underscores Cummins’ commitment to its Destination Zero strategy, aiming for a zero-emissions future. The company is set to manufacture battery packs, electric powertrain systems, and other BEV components for its zero-emissions business segment, Accelera by Cummins.
Amy Davis, President of Accelera by Cummins, emphasized the importance of partnerships with the government and industry to expedite the transition to clean energy. The CEP will dedicate nearly half of its 1.42 million square feet to zero-emissions manufacturing, with the goal of reducing greenhouse gas emissions by approximately 104 million metric tons of carbon dioxide by 2030.
Cummins’ CEO, Jennifer Rumsey, highlighted the significance of the investment, not only to Cummins’ innovation and environmental goals but also to the economic and social vibrancy of Columbus, Indiana. The Mayor of Columbus, Mary Ferdon, also praised the company’s commitment to clean energy and the positive impact on the local workforce and technology sector.
The project represents a crucial step for Cummins in advancing electrification and strengthening domestic battery supply chains in the United States. This investment is based on a press release statement and aims to position Cummins at the forefront of the evolving market for commercial EV solutions.
In other recent news, the Biden administration has announced a $1.1 billion grant to General Motors (NYSE:) and Stellantis (NYSE:) for electric vehicle (EV) production conversion. This initiative is part of a broader $1.7 billion investment aimed at transforming 11 plants across eight states. The funding will facilitate the production of 1 million EVs annually, retain 15,000 jobs, and create 3,000 new positions.
In other developments, Cummins Inc. has increased its quarterly common stock cash dividend by 8.3% from $1.68 to $1.82 per share, marking the 15th consecutive year of dividend growth. Cummins reported earnings of approximately $735 million on sales of $34.1 billion in 2023. Citi recently initiated coverage on Cummins with a Buy rating, citing growth outlook and strategic moves.
Furthermore, Cummins, in collaboration with Daimler (OTC:) Trucks & Buses US Holding LLC and PACCAR (NASDAQ:), formed a joint venture named Amplify Cell Technologies. The venture aims to enhance zero-emissions technology and is set to commence production in a 21-gigawatt hour battery factory in 2027.
Finally, Cummins announced the retirement of its Senior Vice President, Tony Satterthwaite, set for September 2024. These are the recent developments in the company’s activities.
InvestingPro Insights
Cummins Inc. (NYSE: CMI) is demonstrating a robust commitment to growth and stability in the electric vehicle (EV) sector with a historic $150 million investment to expand its EV capabilities. This move is not just a nod to innovation and environmental responsibility but also an indicator of the company’s strong financial health and strategic positioning.
Reflecting on Cummins’ financial metrics, the company’s market capitalization stands at a solid $38.2 billion, showcasing its substantial presence in the industry. The adjusted price-to-earnings (P/E) ratio for the last twelve months as of Q1 2024 is at 15.8, which may appeal to investors looking for reasonable valuation in the machinery sector. The company’s revenue growth over the last twelve months is impressive at 12.85%, indicating a positive trajectory in financial performance.
InvestingPro Tips highlight Cummins’ track record of dividend reliability, with the company raising its dividend for 18 consecutive years and maintaining payments for 54 years straight. This consistent return to shareholders is a testament to Cummins’ financial stability and prudent management. Moreover, analysts predict profitability for the company this year, aligning with its strategic investments and growth initiatives.
Cummins also operates with a moderate level of debt, which is crucial for maintaining financial flexibility, especially when venturing into new markets like EV components manufacturing. This prudent financial management is essential for the company as it navigates the capital-intensive transition towards a zero-emissions future.
For readers looking to delve deeper into Cummins’ financial health and future prospects, InvestingPro offers a wealth of additional insights. There are currently 8 more InvestingPro Tips available, which can provide valuable guidance for informed investment decisions. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, granting access to these exclusive insights and more.
The transition to clean energy is a critical move for Cummins, and with strong financial indicators and strategic investments, the company is well-positioned to thrive in the burgeoning EV market. As Cummins continues to innovate and expand, its financial metrics and InvestingPro Tips will be key factors for investors to watch.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Five9 stock hits 52-week low at $28.74 amid market challenges
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In a turbulent market environment, Five9 (NASDAQ:) Inc’s stock has touched a 52-week low, reaching a price level of $28.74. This significant downturn reflects a broader trend for the cloud software company, which has seen its shares plummet by -58.79% over the past year. Investors are closely monitoring Five9’s performance as it navigates through a period of heightened volatility and shifting industry dynamics, which have contributed to the stock’s current valuation at this low point. The company’s efforts to rebound from this position will be under scrutiny in the coming quarters as market participants look for signs of a strategic turnaround or further indications of market pressures.
In other recent news, Five9 Inc . has achieved an annual revenue run rate exceeding $1 billion in Q2, a significant milestone despite lowering its annual revenue guidance by 3.8% due to customer budget constraints. The company’s adjusted EBITDA margin rose to 17% of revenue, contributing to a strong operating cash flow of $126 million. The company also confirmed plans to reduce its global workforce by approximately 7% by the end of 2024, a strategic move projected to cost between $12 million and $15 million.
Five9’s recent acquisition of Acqueon, a firm specializing in proactive outbound omnichannel customer engagement, aims to expand its AI offerings and bolster its growth. This move is in line with the company’s focus on managing expenses and improving profitability, with initiatives like FedRAMP and expansion into India anticipated to improve gross margins.
In their analysis, Piper Sandler maintained an Overweight rating for Five9, with a steady price target of $47.00, while Needham and BTIG both maintained a Buy rating with price targets of $48.00 and $45.00 respectively. These ratings reflect the firms’ confidence in Five9’s strategic positioning and potential for growth, despite the current challenges and workforce reduction.
InvestingPro Insights
Amid the current market conditions, Five9 Inc’s recent performance can be put into perspective with select data from InvestingPro. The company’s market capitalization stands at roughly $2.15 billion, indicating the size and scale of the business amidst its challenges. Despite the stock’s decline, analysts are showing a hint of optimism, with 20 analysts having revised their earnings estimates upwards for the upcoming period. This could signal a potential turnaround in sentiment or underlying business performance.
Importantly, Five9’s liquid assets are reported to surpass short-term obligations, suggesting that the company maintains a degree of financial flexibility to navigate its current difficulties. Furthermore, while the stock is trading near its 52-week low, it’s worth noting that the relative strength index (RSI) suggests the stock is in oversold territory, which can sometimes precede a rebound in share price. Investors looking for comprehensive analysis and additional InvestingPro Tips on Five9 can find more insights, including 14 other tips, at https://www.investing.com/pro/FIVN.
In terms of financial health, the company operates with a moderate level of debt and is expected to become profitable this year, according to analysts’ predictions. These elements may offer some solace to investors considering the stock’s substantial price fall over the last year. For those seeking a deeper dive into Five9’s valuation and future prospects, the InvestingPro platform provides a fair value estimate of $45.04, which is considerably higher than the current trading price, suggesting potential undervaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
TD Cowen maintains Buy on Terns Pharmaceuticals
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TD Cowen reiterated its Buy rating on shares of Terns Pharmaceuticals (NASDAQ:TERN), following the company’s investor call. The call was held to manage expectations for the upcoming Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML). The firm noted the challenges in measuring the efficacy endpoint (EP) due to disease progression and the absence of treatment switch guidelines, which makes major molecular response (MMR) a challenging efficacy endpoint for Phase 1/2 trials.
The interim Phase 1/2 data aims to evaluate descriptive efficacy signals, considering patients’ baseline BCR-ABL levels and treatment history. The analyst highlighted that the once-daily (QD) dosing and the lack of food effect could potentially enhance the quality of life for patients compared to other allosteric tyrosine kinase inhibitors (TKIs).
Terns Pharmaceuticals has been focusing on the development of improved treatment options for CML. The company’s approach to dosing, which does not require food intake, may offer a more convenient alternative for patients, potentially leading to better adherence and outcomes.
The topline data from the 6-month Phase 1/2 CARDINAL study is anticipated to be available in 2025. This data will provide further insights into the treatment’s efficacy and safety, which are critical factors in the ongoing development and potential approval process.
Investors and stakeholders in Terns Pharmaceuticals are expected to closely monitor the progress of the CARDINAL study, as it could have a significant impact on the company’s future prospects and position in the CML treatment landscape.
In other recent news, Terns Pharmaceuticals has experienced significant developments. The biopharmaceutical company reported robust earnings and revenue results, with Mizuho Securities maintaining an Outperform rating on Terns shares, citing strong enthusiasm for the company’s drug, TERN-701, a potential treatment for chronic myeloid leukemia.
The firm expects the first interim Phase 1 CARDINAL study data for TERN-701 in December.
Terns also announced the appointment of Elona Kogan as its new chief legal officer, a move that underscores the company’s strategic development and pipeline advancement.
The company also secured an extension of its office lease in Foster City, California, through 2027, reflecting Terns Pharmaceuticals’ operational stability and long-term planning.
In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
This development, coupled with the forthcoming Phase 1 data for another of Terns’ drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month, underscores the company’s commitment to innovative therapies.
These recent developments, from financial performance to executive appointments and clinical trials, highlight Terns Pharmaceuticals’ ongoing efforts to advance its strategic objectives and deliver on its mission. The company’s activities are closely watched by investors and industry analysts, including those from Mizuho Securities, who continue to support the company’s potential.
InvestingPro Insights
As Terns Pharmaceuticals (NASDAQ:TERN) navigates the complexities of its Phase 1/2 CARDINAL study, investors are keeping a keen eye on the company’s financial health and stock performance. According to InvestingPro, Terns holds more cash than debt, which is a positive signal for financial stability. Additionally, with five analysts revising their earnings upwards for the upcoming period, there is a sense of optimism about the company’s potential performance.
However, it’s important to note that Terns is not currently profitable and has been quickly burning through cash, which may raise concerns about long-term sustainability. The company’s P/E Ratio stands at -5.71, reflecting these profitability challenges. Despite these hurdles, Terns has managed a 1 Year Price Total Return of 45.42%, indicating some investor confidence in the company’s growth prospects. The anticipated fair value from analysts stands at 15 USD, while the InvestingPro Fair Value is calculated at 5.8 USD, highlighting a divergence in valuation perspectives.
For those looking for more in-depth analysis, additional InvestingPro Tips on Terns Pharmaceuticals can be found at https://www.investing.com/pro/TERN, offering a comprehensive look at the company’s financial details and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Macron discussed support for Ukraine and Gaza ceasefire with Germany’s Scholz
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PARIS (Reuters) – French President Emmanuel Macron discussed the importance of maintaining support for Ukraine and the need for a ceasefire in Gaza during talks on Friday with German Chancellor Olaf Scholz, said the French presidency.
Regarding Ukraine, the two leaders expressed their determination to support the country “for as long and as intensively as necessary” in its war against Russia, the Elysee said.
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