Barclays Issues Pessimistic Forecast for Cummins (NYSE:CMI) Stock Price

Key Points

• Barclays lowered its Cummins price target from $760 to $675 while maintaining an “overweight” rating, implying 28.37% upside from the prior close.
• Several analysts also reduced their targets, although overall sentiment remains positive: 13 analysts rate Cummins a Buy and five rate it Hold, producing a “Moderate Buy” consensus and an average target of $703.18.
• Cummins shares fell 1.0% to $525.83, while the company’s latest quarterly earnings missed EPS expectations ($6.73 versus $7.21) despite revenue of $9.46 billion exceeding estimates.

Cummins (NYSE:CMI - Get Free Report) had its price target lowered by research analysts at Barclays from $760.00 to $675.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Barclays's price objective would indicate a potential upside of 28.37% from the stock's previous close.

A number of other equities research analysts also recently commented on CMI. Evercore dropped their price objective on Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. JPMorgan Chase & Co. reduced their target price on Cummins from $690.00 to $600.00 and set a "neutral" rating on the stock in a report on Wednesday, September 23rd. Sanford C. Bernstein restated a "market perform" rating and set a $700.00 target price on shares of Cummins in a research report on Wednesday, August 5th. Truist Financial lowered their price target on Cummins from $894.00 to $779.00 and set a "buy" rating for the company in a research note on Monday, October 5th. Finally, Wall Street Zen cut Cummins from a "buy" rating to a "hold" rating in a research note on Saturday. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $703.18.

Cummins Trading Down 1.0%

NYSE CMI traded down $5.50 during trading hours on Monday, hitting $525.83. The company's stock had a trading volume of 830,889 shares, compared to its average volume of 991,328. The stock has a fifty day moving average of $555.86 and a 200 day moving average of $620.62. Cummins has a twelve month low of $407.57 and a twelve month high of $737.76. The firm has a market capitalization of $72.39 billion, a P/E ratio of 26.89, a PEG ratio of 1.40 and a beta of 1.24. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The business had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins's revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the business posted $6.43 earnings per share. Equities research analysts forecast that Cummins will post 29.98 earnings per share for the current fiscal year.

Insider Activity

In other Cummins news, VP Earl Newsome sold 698 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the sale, the vice president directly owned 4,479 shares in the company, valued at $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cummins

Several institutional investors and hedge funds have recently modified their holdings of CMI. BlackRock Inc. bought a new stake in Cummins during the 2nd quarter worth approximately $8,204,241,000. Bank of America Corp DE purchased a new stake in shares of Cummins in the second quarter worth approximately $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in shares of Cummins in the second quarter worth approximately $973,198,000. Legal & General Group Plc bought a new position in shares of Cummins in the second quarter valued at approximately $666,635,000. Finally, Amundi lifted its holdings in shares of Cummins by 19.7% in the second quarter. Amundi now owns 893,772 shares of the company's stock valued at $637,446,000 after purchasing an additional 147,093 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Company Profile

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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