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

Key Points

• Broker sentiment is positive: Cummins has a consensus rating of “Moderate Buy” from 15 brokerages, with 11 buy ratings, 1 strong buy, and 3 holds. The average 1-year price target is $738.
• Recent results topped estimates: The company reported quarterly EPS of $6.15 versus the $5.63 consensus estimate, while revenue of $8.40 billion also slightly beat expectations. Revenue rose 2.7% year over year.
• Dividend and trading backdrop remain solid: Cummins paid a quarterly dividend of $2.00, equal to an annualized yield of about 1.2%, and the stock recently traded near $676.93, close to its 52-week high of $737.76.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the fifteen brokerages that are presently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $738.00.

A number of brokerages have recently weighed in on CMI. UBS Group reiterated a "buy" rating on shares of Cummins in a research report on Wednesday, June 17th. Truist Financial boosted their price objective on Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. JPMorgan Chase & Co. upped their price objective on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Raymond James Financial increased their target price on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Finally, Argus boosted their price target on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a report on Monday, June 1st.

Cummins Trading Up 0.1%

NYSE CMI opened at $676.93 on Monday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins has a one year low of $334.70 and a one year high of $737.76. The company has a 50-day simple moving average of $679.54 and a 200-day simple moving average of $609.98. The firm has a market capitalization of $93.41 billion, a PE ratio of 35.13, a price-to-earnings-growth ratio of 1.65 and a beta of 1.22.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. During the same quarter in the prior year, the business earned $5.96 earnings per share. Cummins's quarterly revenue was up 2.7% on a year-over-year basis. On average, equities analysts forecast that Cummins will post 29.32 earnings per share for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were given a $2.00 dividend. The ex-dividend date was Friday, May 22nd. This represents a $8.00 annualized dividend and a yield of 1.2%. Cummins's dividend payout ratio (DPR) is currently 41.52%.

Insider Buying and Selling at Cummins

In related news, CAO Nicole Lamb-Hale sold 2,408 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $685.34, for a total transaction of $1,650,298.72. Following the completion of the sale, the chief accounting officer directly owned 14,084 shares in the company, valued at approximately $9,652,328.56. This trade represents a 14.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Marvin Boakye sold 3,481 shares of Cummins stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the transaction, the vice president directly owned 8,508 shares in the company, valued at $5,784,589.20. This represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cummins

Hedge funds and other institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after buying an additional 2,434,876 shares during the period. Norges Bank acquired a new position in Cummins during the 4th quarter worth $863,441,000. Boston Partners acquired a new position in Cummins during the 3rd quarter worth $473,471,000. London Co. of Virginia bought a new stake in Cummins during the third quarter valued at about $231,732,000. Finally, SG Americas Securities LLC boosted its holdings in Cummins by 257.9% during the first quarter. SG Americas Securities LLC now owns 736,670 shares of the company's stock valued at $396,343,000 after acquiring an additional 530,812 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

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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