Cummins (NYSE:CMI) Price Target Cut to $600.00 by Analysts at Bank of America

Key Points

• Bank of America cut Cummins’ price target from $731 to $600 while implying roughly 15.7% upside from the stock’s $518.54 price. JPMorgan also lowered its target to $600 and maintained a neutral rating.
• Analyst sentiment remains positive overall, with 13 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $736.59.
• Cummins’ latest quarter showed 9.4% year-over-year revenue growth to $9.46 billion, but earnings per share of $6.73 fell short of the $7.21 consensus estimate.

Cummins (NYSE:CMI - Get Free Report) had its price objective reduced by equities researchers at Bank of America from $731.00 to $600.00 in a report issued on Thursday. Bank of America's target price would suggest a potential upside of 15.71% from the company's current price.

A number of other research firms also recently commented on CMI. JPMorgan Chase & Co. decreased their price objective on shares of Cummins from $690.00 to $600.00 and set a "neutral" rating on the stock in a report on Wednesday. Evercore lowered their price target on Cummins from $845.00 to $782.00 and set an "outperform" rating on the stock in a report on Tuesday, August 11th. UBS Group dropped their price objective on Cummins from $850.00 to $835.00 and set a "buy" rating for the company in a research note on Wednesday, August 5th. Truist Financial set a $894.00 target price on Cummins and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and set a $700.00 price target on shares of Cummins in a research note on Wednesday, August 5th. Thirteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $736.59.

Cummins Stock Performance

NYSE CMI opened at $518.54 on Thursday. The stock has a market capitalization of $71.38 billion, a price-to-earnings ratio of 26.47, a PEG ratio of 1.42 and a beta of 1.23. The business's 50 day moving average is $597.46 and its two-hundred day moving average is $622.66. Cummins has a 12-month low of $400.72 and a 12-month high of $737.76. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share 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 during the quarter, compared to analysts' expectations of $9.33 billion. During the same quarter last year, the firm earned $6.43 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. Research analysts expect that Cummins will post 30.06 EPS for the current year.

Insider Buying and Selling

In other news, VP Earl Newsome sold 698 shares of the business'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 transaction of $399,409.56. Following the sale, the vice president owned 4,479 shares in the company, valued at $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Cummins

Hedge funds have recently modified their holdings of the stock. Cedar Mountain Advisors LLC increased its holdings in shares of Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after acquiring an additional 45 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in Cummins in the 2nd quarter worth $26,000. Key Financial Inc raised its position in shares of Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after buying an additional 20 shares during the last quarter. Elevation Wealth Partners LLC grew its position in Cummins by 91.7% during the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock worth $33,000 after buying an additional 22 shares in the last quarter. Finally, Steph & Co. increased its stake in Cummins by 112.9% during the first quarter. Steph & Co. now owns 66 shares of the company's stock valued at $36,000 after acquiring an additional 35 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Company Profile

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

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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