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

Key Points

• Cummins shares hit a new 52-week high, trading as high as $723.84 after closing at $699.97, reflecting strong recent momentum in the stock.
• Wall Street sentiment remains positive, with several analysts raising price targets and the consensus rating sitting at Moderate Buy with a target price of $731.86.
• The company’s latest earnings beat estimates, as Cummins reported $6.15 EPS versus $5.63 expected and revenue of $8.40 billion, while also paying a quarterly dividend of $2.00 per share.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) hit a new 52-week high during trading on Wednesday . The stock traded as high as $723.84 and last traded at $726.7780, with a volume of 80881 shares changing hands. The stock had previously closed at $699.97.

Analyst Ratings Changes

Several equities analysts have commented on CMI shares. Wells Fargo & Company restated an "overweight" rating and issued a $874.00 price target on shares of Cummins in a research note on Wednesday. Argus lifted their target price on Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a report on Monday, June 1st. Citigroup boosted their target price on Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Evercore restated an "outperform" rating and set a $845.00 price target on shares of Cummins in a report on Monday, May 11th. Finally, Morgan Stanley lifted their price objective on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $731.86.

Cummins Price Performance

The stock has a fifty day simple moving average of $654.05 and a 200-day simple moving average of $586.69. The company has a market capitalization of $100.14 billion, a PE ratio of 37.79, a P/E/G ratio of 1.66 and a beta of 1.24. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results 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. The business had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the company earned $5.96 EPS. Equities analysts anticipate that Cummins Inc. will post 29.29 earnings per share for the current year.

Cummins Announces Dividend

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

Insider Buying and Selling at Cummins

In other news, VP Nathan R. Stoner sold 607 shares of the company's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $694.06, for a total value of $421,294.42. Following the completion of the transaction, the vice president owned 9,447 shares in the company, valued at approximately $6,556,784.82. This represents a 6.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Bonnie J. Fetch sold 652 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the sale, the executive vice president owned 11,679 shares in the company, valued at $8,177,519.01. This represents a 5.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by insiders.

Institutional Trading of Cummins

A number of large investors have recently made changes to their positions in CMI. NewEdge Advisors LLC increased its position in Cummins by 123.1% during the first quarter. NewEdge Advisors LLC now owns 96,147 shares of the company's stock worth $51,729,000 after buying an additional 53,048 shares during the period. Optiver Holding B.V. acquired a new stake in shares of Cummins in the first quarter valued at approximately $179,000. First Nebraska Trust Co purchased a new position in shares of Cummins during the first quarter worth approximately $704,000. Financial Solutions Advisory Group Inc. acquired a new position in shares of Cummins in the 1st quarter valued at $4,823,000. Finally, Keel Point LLC increased its holdings in shares of Cummins by 16.2% in the 1st quarter. Keel Point LLC now owns 1,229 shares of the company's stock valued at $661,000 after acquiring an additional 171 shares during the period. 83.46% of the stock is 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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