Cummins (NYSE:CMI) Sets New 1-Year High – Time to Buy?

Cummins Inc. (NYSE:CMI) shares reached a new 52-week high during trading on Wednesday . The stock traded as high as $484.84 and last traded at $475.70, with a volume of 796464 shares changing hands. The stock had previously closed at $484.34.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on CMI. Citigroup lifted their target price on Cummins from $500.00 to $530.00 and gave the company a “buy” rating in a research note on Friday, November 7th. Melius Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 6th. Weiss Ratings reiterated a “buy (b)” rating on shares of Cummins in a research report on Wednesday, November 5th. Finally, Wolfe Research raised Cummins from a “hold” rating to an “outperform” rating in a research note on Monday, August 11th. Ten investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Cummins currently has an average rating of “Moderate Buy” and a consensus target price of $435.00.

Cummins Price Performance

The stock’s 50 day moving average price is $424.13 and its two-hundred day moving average price is $372.39. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The firm has a market capitalization of $66.57 billion, a price-to-earnings ratio of 22.69, a PEG ratio of 2.05 and a beta of 1.07.

Cummins (NYSE:CMI) last announced its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, beating the consensus estimate of $4.83 by $0.76. The firm had revenue of $8.32 billion during the quarter, compared to the consensus estimate of $7.97 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm’s revenue for the quarter was down 1.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $5.86 EPS. On average, equities research analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, November 21st will be given a dividend of $2.00 per share. The ex-dividend date is Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.7%. Cummins’s payout ratio is currently 41.52%.

Insider Buying and Selling

In other news, VP Amy Rochelle Davis sold 5,002 shares of the business’s stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company’s stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of the company’s stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director owned 5,227 shares in the company, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 38,559 shares of company stock worth $16,842,558 over the last 90 days. Corporate insiders own 0.41% of the company’s stock.

Institutional Trading of Cummins

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CMI. Flagship Wealth Advisors LLC acquired a new stake in shares of Cummins during the third quarter worth $28,000. Salomon & Ludwin LLC grew its holdings in shares of Cummins by 1,333.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 86 shares of the company’s stock valued at $37,000 after acquiring an additional 80 shares in the last quarter. Guerra Advisors Inc bought a new position in Cummins in the third quarter valued at approximately $36,000. Tripletail Wealth Management LLC bought a new stake in shares of Cummins during the 3rd quarter worth approximately $39,000. Finally, Osterweis Capital Management Inc. bought a new position in shares of Cummins in the second quarter valued at $31,000. 83.46% of the stock is currently 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.