Cummins Inc. (NYSE:CMI) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate Cummins a “Moderate Buy”: Thirteen of 18 analysts recommend buying the stock, while five rate it a hold. The average 12-month price target is $703.18, above the reported share price of $535.42.
• Cummins reported quarterly revenue of $9.46 billion, up 9.4% year over year and above estimates, but earnings per share of $6.73 fell short of the $7.21 consensus forecast.
• The company declared a quarterly dividend of $2.20 per share, or $8.80 annualized, representing a 1.6% yield and a 44.97% payout ratio. Institutional investors own 83.46% of outstanding shares.

Cummins Inc. (NYSE:CMI - Get Free Report) has been given an average rating of "Moderate Buy" by the eighteen analysts that are presently covering the firm, Marketbeat Ratings reports. Five analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $703.18.

A number of equities analysts recently issued reports on the stock. Citigroup decreased their price target on shares of Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a research note on Monday, October 12th. DA Davidson raised their target price on Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. CICC Research assumed coverage on shares of Cummins in a report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective on the stock. Truist Financial dropped their target price on shares of Cummins from $894.00 to $779.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Finally, Barclays cut their target price on shares of Cummins from $760.00 to $675.00 and set an "overweight" rating for the company in a research note on Monday.

Cummins Price Performance

CMI opened at $535.42 on Wednesday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The stock has a market capitalization of $73.71 billion, a PE ratio of 27.36, a price-to-earnings-growth ratio of 1.38 and a beta of 1.24. The stock's 50 day moving average price is $551.71 and its 200-day moving average price is $620.41. Cummins has a 52-week low of $407.57 and a 52-week high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter last year, the firm earned $6.43 EPS. The business's revenue was up 9.4% on a year-over-year basis. On average, equities research analysts predict that Cummins will post 29.98 EPS for the current year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be issued a $2.20 dividend. This represents a $8.80 annualized dividend and a yield of 1.6%. The ex-dividend date is Friday, November 20th. Cummins's payout ratio is presently 44.97%.

Insider Buying and Selling at Cummins

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, the vice president directly owned 4,479 shares of the company's stock, valued at $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Integrated Advisors Network LLC raised its stake in shares of Cummins by 1.5% during the third quarter. Integrated Advisors Network LLC now owns 2,090 shares of the company's stock worth $1,079,000 after purchasing an additional 30 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in shares of Cummins by 6.4% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock valued at $530,405,000 after acquiring an additional 62,107 shares in the last quarter. Diversify Advisory Services LLC boosted its holdings in shares of Cummins by 5.4% in the third quarter. Diversify Advisory Services LLC now owns 16,021 shares of the company's stock valued at $8,535,000 after acquiring an additional 821 shares in the last quarter. DUTCH ASSET Corp raised its holdings in Cummins by 8.1% during the third quarter. DUTCH ASSET Corp now owns 414 shares of the company's stock worth $214,000 after purchasing an additional 31 shares in the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd raised its holdings in Cummins by 1.0% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 18,645 shares of the company's stock worth $9,631,000 after purchasing an additional 180 shares in the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Company Profile

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

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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