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

Shares of Cummins Inc. (NYSE:CMI) have been assigned an average rating of “Moderate Buy” from the seventeen ratings firms that are currently covering the firm, Marketbeat.com reports. Six analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $588.9333.

CMI has been the subject of a number of recent research reports. Zacks Research downgraded Cummins from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 28th. Argus set a $696.00 target price on shares of Cummins in a research report on Tuesday. Truist Financial reiterated a “buy” rating and set a $703.00 price target (up previously from $653.00) on shares of Cummins in a research note on Friday, February 6th. Citigroup boosted their target price on Cummins from $580.00 to $630.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Finally, Sanford C. Bernstein set a $600.00 price target on Cummins and gave the company a “market perform” rating in a research report on Friday, February 6th.

Insider Buying and Selling

In other Cummins news, insider Brett Michael Merritt sold 1,450 shares of the stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total value of $709,514.00. Following the completion of the sale, the insider directly owned 9,271 shares of the company’s stock, valued at $4,536,485.72. This represents a 13.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.41% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cummins

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Motley Fool Asset Management LLC raised its stake in shares of Cummins by 9.7% in the second quarter. Motley Fool Asset Management LLC now owns 7,018 shares of the company’s stock valued at $2,298,000 after acquiring an additional 623 shares during the last quarter. Applied Finance Capital Management LLC raised its holdings in shares of Cummins by 14.4% in the second quarter. Applied Finance Capital Management LLC now owns 60,797 shares of the company’s stock valued at $19,910,000 after buying an additional 7,656 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in Cummins by 8.4% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company’s stock worth $13,107,000 after buying an additional 2,417 shares in the last quarter. New York State Teachers Retirement System increased its stake in shares of Cummins by 2.1% in the 3rd quarter. New York State Teachers Retirement System now owns 111,911 shares of the company’s stock valued at $47,268,000 after buying an additional 2,305 shares during the period. Finally, Bailard Inc. raised its holdings in Cummins by 7.2% during the 3rd quarter. Bailard Inc. now owns 59,830 shares of the company’s stock worth $25,270,000 after purchasing an additional 4,035 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors.

Cummins Price Performance

Shares of CMI opened at $588.20 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. The company has a market capitalization of $81.27 billion, a price-to-earnings ratio of 28.66, a P/E/G ratio of 1.89 and a beta of 1.13. The business’s 50-day moving average is $548.19 and its 200-day moving average is $467.67. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $617.98.

Cummins (NYSE:CMI) last released its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating the consensus estimate of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm had revenue of $8.54 billion for the quarter, compared to analyst estimates of $8.09 billion. During the same quarter in the prior year, the business earned $5.16 EPS. The company’s revenue for the quarter was up 1.1% compared to the same quarter last year. Equities research analysts expect that Cummins will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Friday, February 20th will be given a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, February 20th. Cummins’s dividend payout ratio is currently 38.99%.

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.