Cummins Inc. (NYSE:CMI) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Cummins Inc. is rated as a "Moderate Buy" by analysts, with one sell rating, six hold ratings, and nine buy ratings from various research firms.
• The company's dividend has increased from $1.82 to $2.00 per quarter, indicating a solid financial position with a 1.9% dividend yield.
• Recent insider transactions include CFO Mark Andrew Smith selling 6,500 shares, reflecting a 17.07% decrease in ownership, while institutional investors hold approximately 83.46% of the company's stock.

Cummins Inc. (NYSE:CMI - Get Free Report) has received an average rating of "Moderate Buy" from the sixteen research firms that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, six have given a hold rating and nine have assigned a buy rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $389.2857.

Several research firms have commented on CMI. Robert W. Baird boosted their target price on Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, September 3rd. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Finally, Melius Research raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, September 3rd.

Cummins Trading Up 1.0%

NYSE CMI opened at $414.47 on Tuesday. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins has a twelve month low of $260.02 and a twelve month high of $415.30. The firm has a market capitalization of $57.11 billion, a PE ratio of 19.49, a P/E/G ratio of 1.98 and a beta of 1.02. The stock's 50 day moving average is $379.91 and its 200 day moving average is $337.39.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same period in the previous year, the company posted $5.26 earnings per share. The firm's revenue was down 1.7% on a year-over-year basis. Research analysts forecast that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd were paid a $2.00 dividend. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Friday, August 22nd. Cummins's dividend payout ratio (DPR) is presently 37.61%.

Insider Transactions at Cummins

In other news, CFO Mark Andrew Smith sold 6,500 shares of the business's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the transaction, the chief financial officer owned 31,582 shares in the company, valued at $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Robert Enright sold 1,860 shares of the business's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president owned 955 shares of the company's stock, valued at $384,158.30. This represents a 66.07% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 26,039 shares of company stock valued at $10,385,075. Insiders own 0.41% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Valeo Financial Advisors LLC raised its stake in shares of Cummins by 4.1% in the second quarter. Valeo Financial Advisors LLC now owns 12,063 shares of the company's stock worth $3,951,000 after purchasing an additional 477 shares during the last quarter. NWF Advisory Services Inc. increased its position in Cummins by 9.7% during the second quarter. NWF Advisory Services Inc. now owns 733 shares of the company's stock valued at $240,000 after acquiring an additional 65 shares during the last quarter. SevenBridge Financial Group LLC increased its position in Cummins by 23.1% during the second quarter. SevenBridge Financial Group LLC now owns 9,968 shares of the company's stock valued at $3,265,000 after acquiring an additional 1,870 shares during the last quarter. Osaic Holdings Inc. increased its position in Cummins by 59.3% during the second quarter. Osaic Holdings Inc. now owns 44,454 shares of the company's stock valued at $14,351,000 after acquiring an additional 16,546 shares during the last quarter. Finally, American Trust increased its position in Cummins by 1.6% during the second quarter. American Trust now owns 10,110 shares of the company's stock valued at $3,311,000 after acquiring an additional 161 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

About Cummins

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.

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