Cummins Inc. (NYSE:CMI) Stock Has Consensus Price Target of $659.44 According to Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Cummins, with 13 buy and 6 hold ratings among 19 firms and an average 12-month price target of $659.44.
• Shares traded at $451.68, down $3.72 that day and near the stock’s 52-week low of $443.62; the 52-week high is $737.76.
• Quarterly results were mixed: earnings of $8.25 per share edged past estimates, while revenue of $9.44 billion fell short of expectations despite growing 13.5% year over year. Cummins also declared a $2.20 quarterly dividend.

Cummins Inc. (NYSE:CMI - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the nineteen ratings firms that are covering the firm, Marketbeat Ratings reports. Six research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $659.44.

A number of research firms have recently commented on CMI. Evercore cut their price objective on shares of Cummins from $845.00 to $782.00 and set an "outperform" rating for the company in a research report on Tuesday, August 11th. Truist Financial decreased their target price on shares of Cummins from $779.00 to $637.00 and set a "buy" rating on the stock in a report on Friday, November 6th. Wall Street Zen upgraded shares of Cummins from a "hold" rating to a "buy" rating in a research note on Tuesday, November 10th. 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. Finally, DA Davidson boosted their price target on shares of Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research report on Thursday, August 6th.

Insider Activity at Cummins

In related news, VP Earl Newsome sold 698 shares of the company'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 value of $399,409.56. Following 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Cummins

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in Cummins in the second quarter worth $8,204,241,000. Fisher Asset Management LLC increased its stake 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 acquiring an additional 173,274 shares during the last quarter. Bank of America Corp DE purchased a new stake in Cummins during the second quarter valued at about $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in Cummins during the second quarter valued at about $973,198,000. Finally, Legal & General Group Plc bought a new stake in Cummins during the second quarter worth about $666,635,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Stock Performance

Shares of CMI traded down $3.72 during mid-day trading on Friday, hitting $451.68. The stock had a trading volume of 1,885,212 shares, compared to its average volume of 1,503,466. Cummins has a 52 week low of $443.62 and a 52 week high of $737.76. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.74 and a quick ratio of 1.13. The business has a fifty day moving average price of $516.73 and a 200-day moving average price of $596.65. The firm has a market cap of $61.92 billion, a P/E ratio of 18.85, a PEG ratio of 1.21 and a beta of 1.26.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported $8.25 EPS for the quarter, beating analysts' consensus estimates of $8.20 by $0.05. The company had revenue of $9.44 billion for the quarter, compared to analysts' expectations of $9.89 billion. Cummins had a net margin of 9.26% and a return on equity of 26.82%. Cummins's revenue was up 13.5% compared to the same quarter last year. During the same period in the prior year, the company posted $5.59 EPS. On average, equities research analysts expect that Cummins will post 29.83 EPS for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, November 20th will be given a dividend of $2.20 per share. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, November 20th. Cummins's dividend payout ratio (DPR) is 36.73%.

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.

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