Analysts Set Cummins Inc. (NYSE:CMI) PT at $745.64

Cummins Inc. (NYSE:CMI) has received a consensus rating of “Moderate Buy” from the fifteen research firms that are currently covering the stock, Marketbeat.com reports. Four research analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $764.5385.

CMI has been the subject of several analyst reports. Wells Fargo & Company raised their target price on Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. Morgan Stanley increased their price target on shares of Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. Evercore restated an “outperform” rating and issued a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $700.00 target price on shares of Cummins in a research note on Wednesday, August 5th. Finally, Truist Financial set a $894.00 price target on shares of Cummins in a research report on Wednesday, August 5th.

Insider Activity at Cummins

In related news, VP Earl Newsome sold 698 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, the vice president directly owned 4,479 shares of the company’s stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.30% of the company’s stock.

Institutional Trading of Cummins

Several hedge funds and other institutional investors have recently bought and sold shares of CMI. Cedar Mountain Advisors LLC raised its stake in Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock worth $26,000 after buying an additional 45 shares in the last quarter. Persistent Asset Partners Ltd bought a new stake in shares of Cummins during the second quarter valued at approximately $26,000. Wellington Shields Capital Management LLC purchased a new stake in Cummins in the fourth quarter worth $27,000. Key Financial Inc raised its holdings in Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after purchasing an additional 20 shares in the last quarter. Finally, Birchwood Financial Partners Inc. bought a new position in Cummins in the fourth quarter worth $28,000. Institutional investors own 83.46% of the company’s stock.

Cummins Price Performance

CMI opened at $561.44 on Tuesday. The firm has a 50-day moving average price of $632.30 and a 200-day moving average price of $626.49. Cummins has a twelve month low of $390.11 and a twelve month high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $77.29 billion, a price-to-earnings ratio of 28.69, a PEG ratio of 1.52 and a beta of 1.23.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. During the same quarter in the previous year, the company posted $6.43 earnings per share. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. Equities analysts expect that Cummins will post 30.06 EPS for the current year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were issued a $2.20 dividend. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, August 21st. This is an increase from Cummins’s previous quarterly dividend of $2.00. Cummins’s payout ratio is 44.97%.

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.