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Cummins Inc. (NYSE:CMI) Given Consensus Recommendation of "Hold" by Brokerages

Cummins logo with Auto/Tires/Trucks background

Key Points

  • Cummins Inc. has received a consensus recommendation of "Hold" from twelve research firms, with one sell rating, six holds, and five buy ratings.
  • Notable analyst activity includes Goldman Sachs upgrading Cummins to "buy" with a price target increase to $431.00, while UBS Group downgraded it to "sell" with a lowered target of $240.00.
  • The company announced a quarterly dividend increase to $2.00 per share, reflecting an annualized yield of 2.17%, following a prior dividend of $1.82.
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Cummins Inc. (NYSE:CMI - Get Free Report) has earned an average recommendation of "Hold" from the twelve research firms that are presently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating on the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $361.92.

A number of research firms have recently commented on CMI. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. UBS Group lowered Cummins from a "buy" rating to a "sell" rating and lowered their price target for the company from $400.00 to $240.00 in a research note on Monday, April 7th. Citigroup restated a "buy" rating and set a $360.00 price target (up from $350.00) on shares of Cummins in a research note on Tuesday, June 24th. Truist Financial lowered their price target on Cummins from $420.00 to $338.00 and set a "hold" rating on the stock in a research note on Tuesday, April 8th. Finally, Barclays boosted their price target on Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st.

View Our Latest Stock Report on Cummins

Insiders Place Their Bets

In related news, Director John H. Stone acquired 1,000 shares of the firm's stock in a transaction on Friday, May 16th. The shares were bought at an average cost of $332.08 per share, with a total value of $332,080.00. Following the completion of the acquisition, the director owned 2,441 shares of the company's stock, valued at $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.41% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in shares of Cummins by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 17,283,469 shares of the company's stock worth $5,417,331,000 after acquiring an additional 321,823 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Cummins by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 3,377,583 shares of the company's stock worth $1,174,504,000 after acquiring an additional 84,112 shares in the last quarter. Northern Trust Corp boosted its holdings in shares of Cummins by 1.2% in the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock worth $597,170,000 after acquiring an additional 22,202 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Cummins by 0.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,634,580 shares of the company's stock worth $512,343,000 after acquiring an additional 8,487 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Cummins by 6.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,626,093 shares of the company's stock worth $566,856,000 after acquiring an additional 99,009 shares in the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Price Performance

NYSE CMI opened at $369.28 on Monday. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.34 and a quick ratio of 0.81. The stock's 50-day moving average is $330.38 and its two-hundred day moving average is $330.69. The firm has a market cap of $50.87 billion, a P/E ratio of 18.37, a price-to-earnings-growth ratio of 2.05 and a beta of 1.03. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $387.90.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Monday, May 5th. The company reported $5.96 EPS for the quarter, topping analysts' consensus estimates of $4.92 by $1.04. The business had revenue of $8.17 billion for the quarter, compared to analyst estimates of $8.22 billion. Cummins had a return on equity of 26.88% and a net margin of 8.20%. The firm's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period in the previous year, the company posted $5.08 earnings per share. On average, analysts anticipate that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 2.17%. This is an increase from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. Cummins's payout ratio is presently 36.22%.

Cummins Company Profile

(Get Free Report

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.

Further Reading

Analyst Recommendations for Cummins (NYSE:CMI)

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.

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