Cummins Inc. (NYSE:CMI) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Cummins Inc. has received an average rating of "Moderate Buy" from eighteen brokerages, with a price objective averaging $397.43.
• The company has recently increased its quarterly dividend to $2.00, up from the previous $1.82, resulting in an annualized dividend yield of 1.9%.
• In the last ninety days, company insiders sold 43,119 shares of Cummins stock, valued at approximately $17.67 million.

Cummins Inc. (NYSE:CMI - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eighteen brokerages that are presently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $397.4286.

CMI has been the topic of several research analyst reports. Weiss Ratings restated a "buy (b)" rating on shares of Cummins in a research report on Saturday, September 27th. Melius Research upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research report on Wednesday, September 3rd. Robert W. Baird boosted their price objective on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Finally, Melius upgraded Cummins from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research report on Wednesday, September 3rd.

Insider Buying and Selling

In related news, VP Robert Enright sold 1,860 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the sale, the vice president directly owned 955 shares in the company, valued at approximately $384,158.30. The trade was a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the completion of the sale, the vice president owned 20,738 shares in the company, valued at $8,354,925.44. This represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 43,119 shares of company stock valued at $17,674,285 in the last ninety days. Company insiders own 0.41% of the company's stock.

Institutional Investors Weigh In On Cummins

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CMI. Olde Wealth Management LLC purchased a new stake in Cummins during the first quarter valued at approximately $30,000. Accredited Wealth Management LLC purchased a new stake in Cummins during the first quarter valued at approximately $31,000. Osterweis Capital Management Inc. purchased a new stake in shares of Cummins in the second quarter worth approximately $31,000. Opal Wealth Advisors LLC purchased a new stake in shares of Cummins in the first quarter worth approximately $37,000. Finally, Richardson Financial Services Inc. purchased a new stake in shares of Cummins in the first quarter worth approximately $39,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Performance

NYSE:CMI opened at $413.28 on Friday. The stock has a 50-day simple moving average of $407.21 and a two-hundred day simple moving average of $349.37. Cummins has a 52-week low of $260.02 and a 52-week high of $440.51. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The firm has a market capitalization of $56.95 billion, a PE ratio of 19.43, a P/E/G ratio of 2.06 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) 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 business had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the previous year, the company posted $5.26 earnings per share. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. Analysts forecast that Cummins will post 22.54 EPS for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were given a $2.00 dividend. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis 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%.

Cummins Company Profile

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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