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

Key Points

• Seventeen analysts give Cummins a consensus recommendation of "Moderate Buy" (11 buys, 6 holds) with an average 1‑year price target of $600.27, and several firms raised targets to $730 (Truist) and $710 (Citigroup).
• Cummins recently beat quarterly estimates with EPS $5.81 vs. $5.17 and revenue $8.54B vs. $8.09B, and the stock trades around $642 with a market cap of $88.7B, PE of 31.3 and a 52‑week range of $284–$665.
• Insiders sold ~31,195 shares (~$18.4M) over the past three months while institutional ownership is ~83.5%, and the company pays a $2.00 quarterly dividend (≈1.2% yield, ~39% payout ratio).

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the seventeen ratings firms that are currently covering the stock, MarketBeat reports. Six research analysts have rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $600.2667.

CMI has been the subject of a number of research reports. Truist Financial increased their price target on Cummins from $703.00 to $730.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Citigroup increased their price target on Cummins from $630.00 to $710.00 and gave the company a "buy" rating in a research note on Monday, April 13th. UBS Group set a $565.00 price target on Cummins and gave the company a "neutral" rating in a research note on Friday, February 6th. Robert W. Baird set a $580.00 price target on Cummins in a research note on Friday, February 6th. Finally, Wolfe Research cut shares of Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price objective on the stock. in a research note on Monday, January 26th.

Cummins Stock Performance

Shares of CMI opened at $642.21 on Wednesday. The firm has a 50-day moving average price of $578.57 and a 200 day moving average price of $534.38. The firm has a market capitalization of $88.73 billion, a PE ratio of 31.30, a P/E/G ratio of 2.09 and a beta of 1.14. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. Cummins has a 52-week low of $284.23 and a 52-week high of $665.13.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. The firm had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. Cummins's revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.16 EPS. On average, sell-side analysts anticipate that Cummins will post 26.03 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were paid a $2.00 dividend. The ex-dividend date of this dividend was Friday, February 20th. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. Cummins's payout ratio is currently 38.99%.

Insider Buying and Selling

In related news, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total value of $2,497,651.10. Following the transaction, the vice president directly owned 15,130 shares in the company, valued at $8,849,990.90. The trade was a 22.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Amy Rochelle Davis sold 4,054 shares of Cummins stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total value of $2,275,672.36. Following the completion of the transaction, the vice president owned 15,807 shares in the company, valued at $8,873,101.38. The trade was a 20.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 31,195 shares of company stock worth $18,397,489. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Cummins

A number of hedge funds have recently modified their holdings of the stock. Nicolet Advisory Services LLC grew its holdings in shares of Cummins by 1.6% in the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock worth $619,000 after acquiring an additional 17 shares during the last quarter. Uhlmann Price Securities LLC increased its position in shares of Cummins by 2.4% in the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after acquiring an additional 17 shares in the last quarter. Frank Rimerman Advisors LLC increased its position in shares of Cummins by 0.5% in the fourth quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company's stock worth $1,908,000 after acquiring an additional 18 shares in the last quarter. Financial Consulate Inc. increased its position in shares of Cummins by 16.8% in the fourth quarter. Financial Consulate Inc. now owns 125 shares of the company's stock worth $64,000 after acquiring an additional 18 shares in the last quarter. Finally, ICW Investment Advisors LLC increased its position in shares of Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after acquiring an additional 18 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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