Cummins (NYSE:CMI) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Cummins from “hold” to “buy.” Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $662.18, though several firms recently lowered their targets.
• Cummins beat quarterly earnings estimates, reporting $8.25 per share versus $8.20 expected. Revenue rose 13.5% year over year to $9.44 billion but fell short of the $9.89 billion forecast.
• AI data-center power demand and a strong order backlog could support growth, but supply constraints, truck-market weakness, and reduced growth and margin expectations remain risks.

Cummins (NYSE:CMI - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Tuesday, Wall Street Zen reports.

A number of other equities research analysts also recently weighed in on CMI. Morgan Stanley boosted their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, August 31st. Wells Fargo & Company decreased 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. Barclays decreased their price objective on shares of Cummins from $675.00 to $600.00 and set an "overweight" rating for the company in a report on Monday. Finally, Truist Financial dropped their price objective on shares of Cummins from $779.00 to $637.00 and set a "buy" rating on the stock in a research note on Friday. Thirteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Cummins has an average rating of "Moderate Buy" and a consensus price target of $662.18.

Cummins Stock Performance

Shares of CMI stock opened at $466.73 on Tuesday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. Cummins has a one year low of $443.62 and a one year high of $737.76. The company's 50-day simple moving average is $524.50 and its 200-day simple moving average is $599.03. The stock has a market capitalization of $64.25 billion, a price-to-earnings ratio of 19.27, a PEG ratio of 1.24 and a beta of 1.26.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported $8.25 earnings per share for the quarter, beating the consensus estimate of $8.20 by $0.05. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The firm had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.89 billion. During the same period in the previous year, the company earned $5.59 earnings per share. Cummins's quarterly revenue was up 13.5% on a year-over-year basis. Equities analysts anticipate that Cummins will post 29.98 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, VP Earl Newsome sold 698 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares in the company, valued at $2,562,973.38. This represents a 13.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Cummins

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CMI. Persistent Asset Partners Ltd bought a new stake in shares of Cummins in the 2nd quarter worth $26,000. Balance Wealth Partners LLC bought a new position in Cummins during the third quarter valued at about $32,000. Elevation Wealth Partners LLC boosted its stake in Cummins by 91.7% during the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company's stock valued at $33,000 after buying an additional 22 shares in the last quarter. Latitude Advisors LLC bought a new stake in Cummins in the third quarter worth about $39,000. Finally, Laurel Wealth Advisors LLC bought a new stake in Cummins in the third quarter worth about $42,000. Institutional investors own 83.46% of the company's stock.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: AI data-center power demand and a strong order backlog could support growth. However, supply constraints may limit the company’s ability to meet demand. Zacks article
• Neutral Sentiment: Barclays cut its price target to $600 from $675 but maintained an Overweight rating, indicating it still sees potential upside from the referenced share price. Barclays rating information
• Neutral Sentiment: Oppenheimer maintained its Hold rating, while Wells Fargo, Citigroup and Truist also reduced their price targets; the reports provided do not specify the new targets. Oppenheimer rating Wells Fargo target report Citigroup target report Truist target report
• Negative Sentiment: JPMorgan lowered its target sharply, from $600 to $465, and moved to a Neutral rating. The bank’s target is approximately in line with the referenced share price. JPMorgan rating information
• Negative Sentiment: An analysis cited cuts to fair value estimates as analysts trimmed growth and margin expectations. Truck-market weakness is another concern alongside supply constraints. Yahoo Finance article

Cummins Company Profile

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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