Cummins Inc. (NYSE:CMI) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Cummins has a “Moderate Buy” consensus rating from 16 brokerages, with 12 buy ratings and four holds. The average 12-month price target is $745.64, above the reported opening price of $564.51.
• In its latest quarter, Cummins earned $6.73 per share, missing analyst expectations of $7.21, while revenue rose 9.4% year over year to $9.46 billion and exceeded estimates.
• The company raised its quarterly dividend to $2.20 per share, or $8.80 annually, representing a 1.6% yield and a 44.97% payout ratio.

Cummins Inc. (NYSE:CMI - Get Free Report) has received a consensus rating of "Moderate Buy" from the sixteen brokerages that are covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $745.6429.

CMI has been the topic of a number of recent research reports. Sanford C. Bernstein restated a "market perform" rating and issued a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. CICC Research initiated coverage on shares of Cummins in a research note on Sunday, August 23rd. They set an "outperform" rating on the stock. Evercore reiterated an "outperform" rating and set a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Finally, Citigroup lifted their target price on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th.

Cummins Price Performance

Shares of NYSE CMI opened at $564.51 on Tuesday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $77.71 billion, a price-to-earnings ratio of 28.85, a price-to-earnings-growth ratio of 1.35 and a beta of 1.24. Cummins has a twelve month low of $389.52 and a twelve month high of $737.76. The business has a 50 day simple moving average of $644.25 and a 200-day simple moving average of $627.93.

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 the consensus estimate of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter last year, the business earned $6.43 earnings per share. The business's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts expect that Cummins will post 30.06 earnings per share for the current year.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be issued a $2.20 dividend. This is a positive change from Cummins's previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. Cummins's dividend payout ratio (DPR) is 44.97%.

Insider Transactions at Cummins

In related news, VP Earl Newsome sold 698 shares of the company's stock in a transaction 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 $2,562,973.38. This represents a 13.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cummins

A number of hedge funds have recently added to or reduced their stakes in CMI. California State Teachers Retirement System increased its holdings in shares of Cummins by 71,801.8% in the 2nd quarter. California State Teachers Retirement System now owns 148,240,699 shares of the company's stock worth $105,726,749,000 after acquiring an additional 148,034,528 shares during the period. BlackRock Inc. acquired a new position in Cummins during the 2nd quarter valued at about $8,204,241,000. Northwestern Mutual Wealth Management Co. boosted its stake in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after purchasing an additional 2,434,876 shares during the period. Bank of America Corp DE bought a new position in Cummins in the 2nd quarter worth about $1,408,353,000. Finally, Norges Bank acquired a new stake in shares of Cummins in the fourth quarter valued at approximately $863,441,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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