Cummins Inc. (NYSE:CMI) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate Cummins “Moderate Buy”: Eleven of 15 analysts recommend buying the stock, while four recommend holding it. The average 12-month price target is approximately $745.64.
• Quarterly results were mixed: Cummins reported $6.73 in adjusted earnings per share, below the $7.21 consensus estimate, but revenue rose 9.4% year over year to $9.46 billion, exceeding expectations.
• The company raised its quarterly dividend from $2.00 to $2.20 per share, equivalent to an annualized $8.80 dividend and a 1.4% yield. Shares opened at $643.44, down 1.0%.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) have been given an average recommendation of "Moderate Buy" by the fifteen research firms that are covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $745.6429.

Several research firms have commented on CMI. Truist Financial set a $894.00 price objective on Cummins in a research note on Wednesday. Weiss Ratings reissued a "buy (b-)" rating on shares of Cummins in a report on Monday. Wells Fargo & Company increased their price target on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a report on Wednesday, June 17th. Citigroup boosted their price objective on shares of Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, JPMorgan Chase & Co. raised their target price on shares of Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th.

Cummins Trading Down 1.0%

NYSE:CMI opened at $643.44 on Friday. The company has a market capitalization of $88.58 billion, a PE ratio of 32.88, a P/E/G ratio of 1.58 and a beta of 1.24. Cummins has a 52-week low of $379.41 and a 52-week high of $737.76. The stock's 50 day moving average price is $668.87 and its 200 day moving average price is $625.03. The company has a quick ratio of 1.11, a current ratio of 1.73 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The firm had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $6.43 EPS. On average, research analysts anticipate that Cummins will post 29.53 EPS for the current year.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a dividend of $2.20 per share. The ex-dividend date is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. Cummins's dividend payout ratio (DPR) is presently 41.52%.

Insider Buying and Selling

In other news, VP Jennifer Mary Bush sold 5,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the transaction, the vice president owned 11,986 shares in the company, valued at $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total value of $518,971.60. Following the transaction, the vice president directly owned 8,316 shares of the company's stock, valued at $5,912,010.72. This trade represents a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 7,690 shares of company stock valued at $5,360,654 in the last three months. 0.30% of the stock is owned by insiders.

Institutional Trading of Cummins

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in Cummins by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock valued at $9,058,841,000 after buying an additional 98,544 shares in the last quarter. State Street Corp increased its position in Cummins by 0.8% during the fourth quarter. State Street Corp now owns 6,509,852 shares of the company's stock worth $3,322,954,000 after buying an additional 49,628 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Cummins by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after acquiring an additional 35,286 shares during the last quarter. Fisher Asset Management LLC raised its holdings in shares of Cummins by 1.3% in the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after acquiring an additional 43,722 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of Cummins by 10,317.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after acquiring an additional 2,434,876 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

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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