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

Key Points

• Cummins has a consensus analyst rating of “Moderate Buy” from 16 analysts, with 11 buy ratings, 4 holds, and 1 strong buy. The average 12-month price target is about $731.86.
• The company recently beat earnings expectations, reporting $6.15 EPS versus $5.63 expected, while revenue came in at $8.40 billion, slightly above estimates and up 2.7% year over year.
• Cummins also paid a quarterly dividend of $2.00 per share, equal to an annualized $8.00 dividend and a yield of about 1.1%. Insider selling was noted recently, though institutional ownership remains high at 83.46%.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) have been assigned an average rating of "Moderate Buy" from the sixteen analysts that are presently covering the company, MarketBeat.com reports. Four equities research analysts have rated the stock with a hold recommendation, eleven have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $731.8571.

CMI has been the subject of several research reports. Wall Street Zen cut Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Barclays raised their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Evercore reaffirmed an "outperform" rating and set a $845.00 target price on shares of Cummins in a report on Monday, May 11th. Citigroup upped their target price on Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cummins in a report on Friday, May 22nd.

Cummins Trading Up 2.6%

Shares of CMI stock opened at $718.51 on Thursday. The stock has a 50-day simple moving average of $657.38 and a 200 day simple moving average of $588.25. Cummins has a fifty-two week low of $307.90 and a fifty-two week high of $733.48. The stock has a market capitalization of $99.15 billion, a P/E ratio of 37.29, a P/E/G ratio of 1.71 and a beta of 1.23. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter last year, the business posted $5.96 earnings per share. The company's quarterly revenue was up 2.7% on a year-over-year basis. On average, sell-side analysts expect that Cummins will post 29.29 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, May 22nd. Cummins's dividend payout ratio is currently 41.52%.

Insider Buying and Selling at Cummins

In other news, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the sale, the vice president directly owned 8,316 shares of the company's stock, valued at $5,912,010.72. This represents a 8.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Bonnie J. Fetch sold 652 shares of the company's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $700.19, for a total value of $456,523.88. Following the sale, the executive vice president directly owned 11,679 shares of the company's stock, valued at approximately $8,177,519.01. This represents a 5.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 13,579 shares of company stock valued at $9,377,684 over the last 90 days. 0.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Cummins

Several hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC lifted its stake in Cummins by 123.1% in the 1st quarter. NewEdge Advisors LLC now owns 96,147 shares of the company's stock worth $51,729,000 after acquiring an additional 53,048 shares in the last quarter. Optiver Holding B.V. purchased a new stake in Cummins in the 1st quarter worth about $179,000. First Nebraska Trust Co purchased a new stake in Cummins in the 1st quarter worth about $704,000. Financial Solutions Advisory Group Inc. purchased a new stake in Cummins in the 1st quarter worth about $4,823,000. Finally, Keel Point LLC lifted its stake in Cummins by 16.2% in the 1st quarter. Keel Point LLC now owns 1,229 shares of the company's stock worth $661,000 after acquiring an additional 171 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Company Profile

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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