Cummins Inc. (NYSE:CMI) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Cummins Inc. has received a consensus rating of "Hold" from analysts, with one sell, six hold, and seven buy recommendations among fourteen research firms.
• The company has experienced insider selling, with CFO Mark Andrew Smith divesting 6,500 shares valued at approximately $2.63 million, representing a 17.07% decrease in his ownership.
• Cummins recently announced an increase in its quarterly dividend from $1.82 to $2.00, reflecting a growing commitment to returning value to shareholders.

Cummins Inc. (NYSE:CMI - Get Free Report) has been assigned a consensus recommendation of "Hold" from the fourteen research firms that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and seven have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $370.8333.

CMI has been the topic of a number of recent research reports. Morgan Stanley raised their price target on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Citigroup lifted their target price on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Robert W. Baird lifted their target price on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Finally, Barclays lifted their target price on shares of Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a report on Monday, July 21st.

Insider Transactions at Cummins

In related news, CFO Mark Andrew Smith sold 6,500 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $12,790,710. This trade represents a 17.07% 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 Jennifer Mary Bush sold 520 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $388.13, for a total transaction of $201,827.60. Following the completion of the sale, the vice president directly owned 15,130 shares in the company, valued at approximately $5,872,406.90. The trade was a 3.32% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 24,179 shares of company stock worth $9,636,871. Corporate insiders own 0.41% of the company's stock.

Hedge Funds Weigh In On Cummins

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Capital A Wealth Management LLC acquired a new position in shares of Cummins during the fourth quarter worth approximately $32,000. Osterweis Capital Management Inc. acquired a new position in shares of Cummins during the second quarter worth approximately $31,000. Olde Wealth Management LLC acquired a new position in shares of Cummins during the first quarter worth approximately $30,000. Accredited Wealth Management LLC acquired a new position in shares of Cummins during the first quarter worth approximately $31,000. Finally, Opal Wealth Advisors LLC acquired a new position in shares of Cummins during the first quarter worth approximately $37,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Trading Down 0.5%

Shares of NYSE:CMI opened at $394.2140 on Friday. The firm has a fifty day moving average of $353.38 and a two-hundred day moving average of $334.27. The firm has a market capitalization of $54.32 billion, a P/E ratio of 18.53, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. Cummins has a 12-month low of $260.02 and a 12-month high of $408.38. 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 (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 analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. Cummins's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the firm earned $5.26 EPS. On average, equities analysts expect that Cummins will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be issued a $2.00 dividend. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date is Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 2.0%. Cummins's payout ratio is 37.61%.

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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