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

Cummins Inc. (NYSE:CMI) has been given a consensus rating of “Moderate Buy” by the sixteen research firms that are covering the firm, Marketbeat.com reports. Five investment analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $700.50.

Several research analysts have weighed in on CMI shares. Truist Financial set a $815.00 target price on Cummins in a report on Wednesday, May 6th. UBS Group set a $565.00 target price on Cummins and gave the stock a “neutral” rating in a report on Friday, February 6th. Robert W. Baird set a $700.00 target price on Cummins in a report on Wednesday, May 6th. Citigroup lifted their target price on Cummins from $710.00 to $770.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. lifted their price target on Cummins from $600.00 to $725.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th.

Cummins Stock Performance

CMI stock opened at $646.53 on Friday. The business’s 50-day moving average price is $623.70 and its two-hundred day moving average price is $569.87. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The firm has a market cap of $89.22 billion, a PE ratio of 33.55, a P/E/G ratio of 1.57 and a beta of 1.27. Cummins has a 1-year low of $307.90 and a 1-year high of $718.08.

Cummins (NYSE:CMI) last posted its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the previous year, the company posted $5.96 earnings per share. As a group, research analysts forecast that Cummins will post 29.4 earnings per share for the current year.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be paid a $2.00 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. Cummins’s dividend payout ratio (DPR) is currently 41.52%.

Insider Transactions at Cummins

In other Cummins news, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $710.92, for a total value of $518,971.60. Following the sale, the vice president owned 8,316 shares of the company’s stock, valued at $5,912,010.72. This trade represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Nathan R. Stoner sold 607 shares of Cummins stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $694.06, for a total value of $421,294.42. Following the completion of the sale, the vice president directly owned 9,447 shares in the company, valued at $6,556,784.82. This represents a 6.04% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 17,633 shares of company stock worth $11,653,357. 0.30% of the stock is currently owned by company insiders.

Institutional Trading of Cummins

Several hedge funds and other institutional investors have recently modified their holdings of the company. Wellington Grp LLC increased its position in shares of Cummins by 14.4% in the first quarter. Wellington Grp LLC now owns 4,382 shares of the company’s stock valued at $2,358,000 after acquiring an additional 553 shares during the last quarter. Western Wealth Management LLC increased its position in shares of Cummins by 310.9% in the first quarter. Western Wealth Management LLC now owns 2,704 shares of the company’s stock valued at $1,455,000 after acquiring an additional 2,046 shares during the last quarter. Mascagni Wealth Management Inc. acquired a new stake in shares of Cummins in the first quarter valued at about $215,000. Ariadne Wealth Management LP increased its position in shares of Cummins by 5.1% in the first quarter. Ariadne Wealth Management LP now owns 415 shares of the company’s stock valued at $223,000 after acquiring an additional 20 shares during the last quarter. Finally, Bank of America Corp DE increased its position in shares of Cummins by 7.4% in the first quarter. Bank of America Corp DE now owns 1,757,248 shares of the company’s stock valued at $945,434,000 after acquiring an additional 121,102 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

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.