Cummins (NYSE:CMI) Stock Price Target Cut by Barclays

Key Points

• Barclays cut its Cummins price target to $600 from $675 but maintained an “overweight” rating, implying about 29.7% upside from the cited share price.
• Analyst sentiment remains positive overall: Cummins has a “Moderate Buy” consensus rating and an average price target of $662.18, though recent targets include cuts from Wells Fargo and Bank of America.
• In its latest quarter, Cummins earned $8.25 per share, slightly beating estimates, while revenue of $9.44 billion missed expectations; revenue nevertheless rose 13.5% year over year.

Cummins (NYSE:CMI - Get Free Report) had its target price lowered by investment analysts at Barclays from $675.00 to $600.00 in a research note issued on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Barclays's target price would indicate a potential upside of 29.70% from the company's current price.

Other research analysts have also recently issued reports about the company. Sanford C. Bernstein reissued a "market perform" rating and issued a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Wells Fargo & Company cut their price objective on shares of Cummins from $608.00 to $520.00 and set an "overweight" rating for the company in a report on Friday. Bank of America reduced their price objective on shares of Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Morgan Stanley boosted their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Finally, Wall Street Zen lowered shares of Cummins from a "buy" rating to a "hold" rating in a research report on Monday, November 2nd. Thirteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Cummins has an average rating of "Moderate Buy" and a consensus target price of $662.18.

Cummins Price Performance

CMI stock traded up $12.52 during trading on Monday, reaching $462.59. The company's stock had a trading volume of 178,150 shares, compared to its average volume of 1,024,514. The company has a quick ratio of 1.13, a current ratio of 1.74 and a debt-to-equity ratio of 0.46. The company's fifty day moving average is $526.45 and its 200-day moving average is $599.60. The company has a market capitalization of $63.68 billion, a P/E ratio of 19.33, a price-to-earnings-growth ratio of 1.19 and a beta of 1.26. Cummins has a 1 year low of $443.62 and a 1 year high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported $8.25 EPS for the quarter, beating the consensus estimate of $8.20 by $0.05. Cummins had a return on equity of 26.82% and a net margin of 9.26%. The business had revenue of $9.44 billion for the quarter, compared to the consensus estimate of $9.89 billion. During the same period in the previous year, the business earned $5.59 earnings per share. The business's revenue was up 13.5% on a year-over-year basis. On average, research analysts expect that Cummins will post 29.98 earnings per share for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Cummins

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of Cummins during the 2nd quarter worth about $8,204,241,000. Fisher Asset Management LLC lifted its position in Cummins by 4.8% in the third quarter. Fisher Asset Management LLC now owns 3,768,635 shares of the company's stock valued at $1,946,764,000 after buying an additional 173,274 shares during the last quarter. Bank of America Corp DE acquired a new position in Cummins in the second quarter valued at about $1,408,353,000. Bank of New York Mellon Corp acquired a new position in Cummins in the second quarter valued at about $973,198,000. Finally, Legal & General Group Plc purchased a new position in Cummins during the second quarter worth about $666,635,000. Institutional investors own 83.46% of the company's stock.

About Cummins

Cummins Inc is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications.

The company's offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.

Cummins serves customers in markets around the world through manufacturing operations, distribution networks and service locations.

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