Cummins Inc. (NYSE:CMI) Receives Average Recommendation of “Moderate Buy” from Analysts

Cummins Inc. (NYSE:CMI) has received an average rating of “Moderate Buy” from the nineteen research firms that are covering the stock, MarketBeat Ratings reports. Seven equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $476.75.

A number of research analysts have commented on the company. Barclays upped their price target on Cummins from $430.00 to $515.00 and gave the stock an “equal weight” rating in a research note on Tuesday, November 11th. Wells Fargo & Company began coverage on Cummins in a research note on Thursday, November 13th. They set an “overweight” rating and a $599.00 target price on the stock. Citigroup lifted their target price on Cummins from $500.00 to $530.00 and gave the company a “buy” rating in a research report on Friday, November 7th. Truist Financial set a $628.00 price target on shares of Cummins and gave the stock a “buy” rating in a research note on Monday, November 24th. Finally, Argus raised their price objective on shares of Cummins from $459.00 to $573.00 and gave the company a “buy” rating in a research note on Tuesday.

Cummins Price Performance

Shares of CMI opened at $497.08 on Friday. The firm has a 50-day simple moving average of $442.27 and a two-hundred day simple moving average of $387.67. The stock has a market cap of $68.61 billion, a PE ratio of 23.37, a P/E/G ratio of 2.05 and a beta of 1.07. Cummins has a 1-year low of $260.02 and a 1-year high of $500.17. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Thursday, November 6th. The company reported $5.59 EPS for the quarter, topping the consensus estimate of $4.83 by $0.76. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.32 billion for the quarter, compared to analyst estimates of $7.97 billion. During the same period in the prior year, the business posted $5.86 EPS. The business’s revenue for the quarter was down 1.6% compared to the same quarter last year. As a group, analysts forecast that Cummins will post 22.54 EPS for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 4th. Shareholders of record on Friday, November 21st will be given a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, November 21st. Cummins’s dividend payout ratio (DPR) is currently 41.52%.

Insiders Place Their Bets

In related news, CEO Jennifer Rumsey sold 4,570 shares of the business’s stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the completion of the transaction, the chief executive officer directly owned 42,880 shares of the company’s stock, valued at $20,320,403.20. The trade was a 9.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Brett Michael Merritt sold 1,450 shares of the company’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total value of $709,514.00. Following the sale, the insider owned 9,271 shares in the company, valued at approximately $4,536,485.72. This trade represents a 13.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 36,410 shares of company stock worth $16,424,574 over the last 90 days. Corporate insiders own 0.41% of the company’s stock.

Hedge Funds Weigh In On Cummins

A number of institutional investors and hedge funds have recently made changes to their positions in CMI. Strategic Advocates LLC acquired a new stake in Cummins in the third quarter valued at approximately $42,000. Greenfield Seitz Capital Management LLC grew its holdings in Cummins by 1.4% during the 3rd quarter. Greenfield Seitz Capital Management LLC now owns 9,951 shares of the company’s stock worth $4,203,000 after acquiring an additional 135 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of Cummins in the 3rd quarter valued at approximately $8,029,000. Oarsman Capital Inc. raised its holdings in shares of Cummins by 4.6% in the 3rd quarter. Oarsman Capital Inc. now owns 5,600 shares of the company’s stock valued at $2,365,000 after purchasing an additional 244 shares in the last quarter. Finally, First Affirmative Financial Network lifted its position in shares of Cummins by 15.4% during the 3rd quarter. First Affirmative Financial Network now owns 705 shares of the company’s stock worth $298,000 after purchasing an additional 94 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.