Cummins Inc. (NYSE:CMI) Stock Has Consensus Target Price of $736.59 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: 13 of 18 analysts rate Cummins a “buy,” while five recommend holding the stock. The consensus 12-month price target is $736.59, though recent targets range from $600 to $874.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 missed the $7.21 consensus forecast.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equating to an annualized payout of $8.80 and a 1.7% yield. Institutional investors own 83.46% of Cummins shares.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) have received a consensus rating of "Moderate Buy" from the eighteen research firms that are presently covering the stock, Marketbeat Ratings reports. Five equities 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 updated their coverage on the stock in the last year is $736.59.

CMI has been the topic of a number of recent analyst reports. Bank of America reduced their price target on Cummins from $731.00 to $600.00 in a research report on Thursday. Wells Fargo & Company raised their price objective on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Morgan Stanley boosted their target price on Cummins from $752.00 to $761.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. Zacks Research cut Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Citigroup raised their price target on Cummins from $770.00 to $790.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th.

Cummins Stock Up 0.8%

Shares of Cummins stock opened at $525.16 on Friday. The firm's 50 day moving average price is $592.48 and its 200-day moving average price is $621.85. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. Cummins has a 52-week low of $400.72 and a 52-week high of $737.76. The company has a market cap of $72.29 billion, a P/E ratio of 26.83, a PEG ratio of 1.41 and a beta of 1.23.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing the consensus estimate of $7.21 by ($0.48). The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The company's revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the firm earned $6.43 EPS. On average, sell-side analysts predict that Cummins will post 30.06 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were given a $2.20 dividend. This represents a $8.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, August 21st. This is an increase from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is 44.97%.

Insider Buying and Selling

In related news, VP Earl Newsome sold 698 shares of Cummins 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 completion of the sale, the vice president directly owned 4,479 shares in the company, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cummins

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of Cummins in the second quarter valued at about $8,204,241,000. Bank of America Corp DE purchased a new position in shares of Cummins during the second quarter worth $1,408,353,000. Norges Bank acquired a new position in Cummins during the fourth quarter valued at $863,441,000. Bank of New York Mellon Corp acquired a new position in Cummins during the second quarter valued at $973,198,000. Finally, Legal & General Group Plc purchased a new stake in Cummins in the second quarter valued at $666,635,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Company Profile

Cummins Inc is a global power and energy technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines, powertrains and related technologies for commercial vehicles, industrial equipment, mining, construction, agriculture, marine and other applications.

Cummins' products and services include diesel and natural-gas engines, hybrid powertrains, fuel systems, filtration and emission-control technologies, turbochargers, generators and power-generation systems.

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