Citigroup Forecasts Strong Price Appreciation for Cummins (NYSE:CMI) Stock

Key Points

• Citigroup has raised its price target for Cummins (NYSE:CMI) from $380.00 to $425.00, indicating a potential upside of 11.27% and maintaining a "buy" rating on the stock.
• Cummins reported an earnings per share (EPS) of $6.43, exceeding analyst estimates of $5.21, with quarterly revenue of $8.64 billion, slightly above expectations.
• The stock is currently trading at $381.97, with a recent increase of 2.3%, and has an average target price of $367.33 based on a consensus rating of "Hold."

Cummins (NYSE:CMI - Get Free Report) had its price objective boosted by equities researchers at Citigroup from $380.00 to $425.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price target points to a potential upside of 11.27% from the company's current price.

A number of other equities research analysts have also issued reports on the stock. Barclays raised their price target on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st. Morgan Stanley raised their price target on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a report on Tuesday, May 6th. The Goldman Sachs Group raised shares of Cummins from a "neutral" rating to a "buy" rating and lifted their target price for the company from $410.00 to $431.00 in a research note on Tuesday, May 27th. Evercore ISI cut their target price on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company's stock. According to data from MarketBeat, Cummins currently has a consensus rating of "Hold" and an average target price of $367.33.

Cummins Trading Up 2.3%

Shares of CMI stock traded up $8.74 on Wednesday, hitting $381.97. 1,392,860 shares of the company's stock traded hands, compared to its average volume of 886,312. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 1.34. Cummins has a one year low of $260.02 and a one year high of $387.90. The company's fifty day simple moving average is $336.13 and its 200 day simple moving average is $331.08. The stock has a market capitalization of $52.62 billion, a price-to-earnings ratio of 19.00, a P/E/G ratio of 2.01 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 EPS for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a net margin of 8.20% and a return on equity of 26.88%. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the firm earned $5.26 EPS. The firm's quarterly revenue was down 1.7% compared to the same quarter last year. Equities analysts forecast that Cummins will post 22.54 EPS for the current year.

Insider Buying and Selling at Cummins

In other Cummins news, Director John H. Stone bought 1,000 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was bought at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the transaction, the director owned 2,441 shares of the company's stock, valued at $810,607.28. This represents a 69.40% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.41% of the stock is owned by insiders.

Institutional Trading of Cummins

Large investors have recently added to or reduced their stakes in the business. Olde Wealth Management LLC bought a new stake in Cummins during the first quarter valued at approximately $30,000. Accredited Wealth Management LLC bought a new stake in Cummins during the first quarter valued at approximately $31,000. Capital A Wealth Management LLC bought a new position in shares of Cummins in the fourth quarter worth approximately $32,000. Opal Wealth Advisors LLC bought a new position in shares of Cummins in the first quarter worth approximately $37,000. Finally, Richardson Financial Services Inc. bought a new position in shares of Cummins in the first quarter worth approximately $39,000. 83.46% of the stock is currently owned by institutional investors.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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