Cummins (NYSE:CMI) Given New $693.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised its price target on Cummins to $693 (from $630) and kept an "overweight" rating, implying about a 13.13% upside from the current share price.
• Cummins recently beat quarterly estimates with EPS of $5.81 vs. $5.17 expected and revenue of $8.54B, while the stock trades around $612.57 with a market cap of about $84.6B.
• Company insiders have sold 31,195 shares worth $18.4M in the past 90 days, even as institutional investors own roughly 83.46% of the stock and the consensus rating remains a “Moderate Buy.”

Cummins (NYSE:CMI - Get Free Report) had its price target increased by investment analysts at Wells Fargo & Company from $630.00 to $693.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Wells Fargo & Company's target price points to a potential upside of 13.13% from the company's current price.

Several other research firms have also recently issued reports on CMI. UBS Group set a $565.00 target price on shares of Cummins and gave the stock a "neutral" rating in a research note on Friday, February 6th. Sanford C. Bernstein set a $600.00 target price on shares of Cummins and gave the stock a "market perform" rating in a research note on Friday, February 6th. Citigroup increased their target price on shares of Cummins from $580.00 to $630.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. Finally, Truist Financial reiterated a "buy" rating and issued a $703.00 target price (up from $653.00) on shares of Cummins in a research note on Friday, February 6th. Eleven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $593.13.

Cummins Stock Performance

Shares of CMI stock traded down $3.57 during trading on Monday, reaching $612.57. 90,987 shares of the company's stock traded hands, compared to its average volume of 924,727. The company has a market capitalization of $84.63 billion, a P/E ratio of 29.85, a PEG ratio of 1.95 and a beta of 1.14. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51. The firm's 50-day moving average is $568.28 and its 200 day moving average is $516.84. Cummins has a 1 year low of $269.24 and a 1 year high of $620.78.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $5.81 EPS for the quarter, beating analysts' consensus estimates of $5.17 by $0.64. The company had revenue of $8.54 billion for the quarter, compared to analysts' expectations 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 period in the prior year, the company posted $5.16 EPS. Equities research analysts expect that Cummins will post 22.54 EPS for the current year.

Insider Activity at Cummins

In related news, VP Donald G. Jackson sold 1,600 shares of the stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the transaction, the vice president owned 7,214 shares of the company's stock, valued at approximately $4,329,337.82. This trade represents a 18.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Jennifer Mary Bush sold 4,270 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the transaction, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. This represents a 22.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 31,195 shares of company stock worth $18,397,489 in the last 90 days. Corporate insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Cummins

Several institutional investors and hedge funds have recently made changes to their positions in the business. Mirae Asset Global Investments Co. Ltd. increased its position in shares of Cummins by 8.4% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock valued at $13,107,000 after acquiring an additional 2,417 shares during the period. New York State Teachers Retirement System boosted its holdings in shares of Cummins by 2.1% during the third quarter. New York State Teachers Retirement System now owns 111,911 shares of the company's stock worth $47,268,000 after purchasing an additional 2,305 shares during the period. Bailard Inc. boosted its holdings in shares of Cummins by 7.2% during the third quarter. Bailard Inc. now owns 59,830 shares of the company's stock worth $25,270,000 after purchasing an additional 4,035 shares during the period. Fisher Asset Management LLC boosted its holdings in shares of Cummins by 2.8% during the third quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company's stock worth $1,422,121,000 after purchasing an additional 91,956 shares during the period. Finally, Accredited Wealth Management LLC boosted its holdings in shares of Cummins by 3,100.0% during the third quarter. Accredited Wealth Management LLC now owns 3,200 shares of the company's stock worth $1,352,000 after purchasing an additional 3,100 shares during the period. Institutional investors own 83.46% of the company's stock.

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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