Cummins (NYSE:CMI) Hits New 52-Week High – Here’s What Happened

Cummins Inc. (NYSE:CMI) shares reached a new 52-week high during trading on Friday . The stock traded as high as $622.88 and last traded at $622.3480, with a volume of 93056 shares changing hands. The stock had previously closed at $608.89.

Wall Street Analyst Weigh In

Several research firms recently commented on CMI. Raymond James Financial raised their target price on Cummins from $585.00 to $675.00 and gave the company an “outperform” rating in a research report on Monday, February 9th. Robert W. Baird set a $580.00 target price on Cummins in a research report on Friday, February 6th. UBS Group set a $565.00 target price on Cummins and gave the company a “neutral” rating in a research report on Friday, February 6th. Wolfe Research cut Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 target price on the stock. in a research report on Monday, January 26th. Finally, Argus set a $696.00 target price on Cummins in a research report on Tuesday, February 10th. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $598.47.

Cummins Trading Up 2.2%

The company has a market capitalization of $85.98 billion, a price-to-earnings ratio of 30.29, a PEG ratio of 1.90 and a beta of 1.14. The firm has a 50-day moving average price of $570.32 and a 200-day moving average price of $520.85. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.64. The company had revenue of $8.54 billion for the quarter, compared to analysts’ expectations of $8.09 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period last year, the firm earned $5.16 EPS. As a group, sell-side analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Friday, February 20th. Cummins’s payout ratio is presently 38.99%.

Insiders Place Their Bets

In related news, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total value of $2,497,651.10. Following the transaction, the vice president directly owned 15,130 shares in the company, valued at $8,849,990.90. The trade was a 22.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Donald G. Jackson sold 1,600 shares of Cummins stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total value of $960,208.00. Following the completion of the transaction, the vice president owned 7,214 shares in the company, valued at $4,329,337.82. The trade was a 18.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 31,195 shares of company stock worth $18,397,489. Corporate insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CMI. Thompson Investment Management Inc. purchased a new position in shares of Cummins during the fourth quarter valued at $26,000. Activest Wealth Management grew its holdings in shares of Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock valued at $26,000 after buying an additional 43 shares in the last quarter. Wellington Shields Capital Management LLC purchased a new position in shares of Cummins during the fourth quarter valued at $27,000. Flagship Wealth Advisors LLC purchased a new position in shares of Cummins during the third quarter valued at $28,000. Finally, Birchwood Financial Partners Inc. acquired a new stake in Cummins during the fourth quarter valued at $28,000. Hedge funds and other institutional investors 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.