Cummins (NYSE:CMI) Hits New 52-Week High - Here's What Happened

Key Points

• Shares of Cummins (NYSE: CMI) reached a new 52-week high, trading as high as $622.88 and around $622.35 midday versus a prior close of $608.89 on volume of roughly 93,056 shares.
• Cummins posted a quarterly earnings beat with $5.81 EPS vs. $5.17 expected and revenue of $8.54 billion vs. $8.09 billion, and analysts project about 22.54 EPS for the current fiscal year.
• Analyst sentiment is skewed positive with a consensus “Moderate Buy” and an average price target of $598.47 (some firms raised targets up to $703), the company pays a $2.00 quarterly dividend (1.3% yield), and insiders sold roughly 31,195 shares (~$18.4M) last quarter.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) reached a new 52-week high during mid-day trading on Friday . The company traded as high as $622.88 and last traded at $622.3480, with a volume of 93056 shares trading hands. The stock had previously closed at $608.89.

Analysts Set New Price Targets

CMI has been the subject of a number of recent research reports. UBS Group set a $565.00 target price on Cummins and gave the company a "neutral" rating in a research note on Friday, February 6th. Barclays increased their target price on Cummins from $546.00 to $610.00 and gave the company an "overweight" rating in a research note on Friday, January 23rd. Truist Financial reissued a "buy" rating and issued a $703.00 price target (up from $653.00) on shares of Cummins in a report on Friday, February 6th. Wells Fargo & Company increased their price target on Cummins from $630.00 to $693.00 and gave the company an "overweight" rating in a report on Monday. Finally, Wolfe Research downgraded Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 price target for the company. in a report on Monday, January 26th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $598.47.

Cummins Trading Up 2.2%

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. The business has a fifty day simple moving average of $570.32 and a 200 day simple moving average of $520.85. The company has a market cap of $85.98 billion, a P/E ratio of 30.29, a P/E/G ratio of 1.90 and a beta of 1.14.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $5.81 EPS for the quarter, topping analysts' consensus estimates of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The company had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter last year, the business posted $5.16 EPS. Cummins's quarterly revenue was up 1.1% compared to the same quarter last year. Analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Friday, February 20th were issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Friday, February 20th. Cummins's dividend payout ratio (DPR) is currently 38.99%.

Insider Activity at Cummins

In other Cummins news, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the transaction, the vice president owned 15,807 shares of the company's stock, valued at $8,873,101.38. This trade represents a 20.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Jennifer Mary Bush sold 4,270 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total value of $2,497,651.10. Following the completion of the sale, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. This trade represents a 22.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 31,195 shares of company stock worth $18,397,489 over the last quarter. 0.30% of the stock is owned by corporate insiders.

Institutional Trading of Cummins

Hedge funds have recently made changes to their positions in the stock. Thompson Investment Management Inc. bought a new stake in shares of Cummins in the 4th quarter worth approximately $26,000. Activest Wealth Management lifted its holdings in shares of Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares during the last quarter. Wellington Shields Capital Management LLC bought a new stake in shares of Cummins in the 4th quarter worth approximately $27,000. Flagship Wealth Advisors LLC acquired a new stake in Cummins in the 3rd quarter valued at approximately $28,000. Finally, Birchwood Financial Partners Inc. acquired a new stake in Cummins in the 4th quarter valued at approximately $28,000. Institutional investors own 83.46% of the company's stock.

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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