Cummins (NYSE:CMI) Raised to Buy at Melius Research

Key Points

• Cummins has been upgraded to a "buy" rating by Melius Research, with a price target of $500, indicating a potential upside of 27.62% from its current price.
• Multiple analysts have raised their price targets for Cummins recently, with the average price target now set at $389.29, reflecting a consensus rating of "Moderate Buy."
• The company's recent quarterly earnings report showed earnings per share of $6.43, surpassing estimates by $1.22, alongside a revenue of $8.64 billion, exceeding expectations.

Cummins (NYSE:CMI - Get Free Report) was upgraded by Melius Research from a "hold" rating to a "buy" rating in a research report issued on Wednesday,Benzinga reports. The brokerage presently has a $500.00 price target on the stock. Melius Research's target price indicates a potential upside of 27.62% from the stock's current price.

A number of other equities analysts also recently issued reports on CMI. Morgan Stanley upped their price objective on shares of Cummins from $340.00 to $350.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. Truist Financial raised their price target on shares of Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. The Goldman Sachs Group upgraded Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a report on Monday, August 11th. Finally, Barclays lifted their price target on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $389.29.

Cummins Stock Performance

CMI traded down $3.44 during trading on Wednesday, reaching $391.80. 283,674 shares of the company's stock were exchanged, compared to its average volume of 869,971. The company's fifty day simple moving average is $366.41 and its 200-day simple moving average is $335.64. The stock has a market capitalization of $53.98 billion, a P/E ratio of 18.40, a price-to-earnings-growth ratio of 1.93 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins has a 1 year low of $260.02 and a 1 year high of $408.38.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.64 billion during the quarter, compared to analysts' expectations of $8.45 billion. During the same period last year, the business earned $5.26 earnings per share. Cummins's quarterly revenue was down 1.7% on a year-over-year basis. As a group, research analysts predict that Cummins will post 22.54 earnings per share for the current fiscal year.

Insider Activity

In other Cummins news, VP Robert Enright sold 1,860 shares of the business's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $402.26, for a total value of $748,203.60. Following the completion of the transaction, the vice president owned 955 shares in the company, valued at $384,158.30. The trade was a 66.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares in the company, valued at $2,994,038.67. This represents a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,039 shares of company stock worth $10,385,075 over the last 90 days. Company insiders own 0.41% of the company's stock.

Institutional Investors Weigh In On Cummins

A number of large investors have recently modified their holdings of CMI. Capital A Wealth Management LLC acquired a new stake in shares of Cummins during the 4th quarter worth about $32,000. Osterweis Capital Management Inc. purchased a new position in Cummins in the second quarter valued at approximately $31,000. Olde Wealth Management LLC acquired a new stake in Cummins during the first quarter worth approximately $30,000. Accredited Wealth Management LLC purchased a new stake in shares of Cummins during the 1st quarter worth approximately $31,000. Finally, Opal Wealth Advisors LLC acquired a new position in shares of Cummins in the 1st quarter valued at $37,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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