Cummins (NYSE:CMI) Reaches New 12-Month Low - Time to Sell?

Cummins Inc. (NYSE:CMI - Get Free Report) shares hit a new 52-week low on Monday . The stock traded as low as $259.16 and last traded at $269.02, with a volume of 5344 shares changing hands. The stock had previously closed at $277.62.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on CMI shares. UBS Group cut Cummins from a "buy" rating to a "sell" rating and lowered their price objective for the company from $400.00 to $240.00 in a research report on Monday, April 7th. Barclays increased their price objective on Cummins from $310.00 to $381.00 and gave the company an "equal weight" rating in a research report on Wednesday, February 5th. Truist Financial decreased their target price on Cummins from $420.00 to $338.00 and set a "hold" rating for the company in a research report on Tuesday. StockNews.com downgraded shares of Cummins from a "buy" rating to a "hold" rating in a report on Tuesday, March 25th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Cummins from $375.00 to $308.00 and set a "neutral" rating for the company in a research note on Friday. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, Cummins has a consensus rating of "Hold" and an average target price of $354.17.

Cummins Price Performance

The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42. The stock has a 50 day simple moving average of $335.61 and a 200-day simple moving average of $346.83. The firm has a market cap of $39.40 billion, a PE ratio of 10.15, a price-to-earnings-growth ratio of 2.19 and a beta of 1.07.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.70 by $0.46. Cummins had a return on equity of 27.12% and a net margin of 11.57%. The company had revenue of $8.45 billion for the quarter, compared to the consensus estimate of $8.06 billion. During the same quarter last year, the company earned $4.14 EPS. The firm's quarterly revenue was down 1.1% on a year-over-year basis. Equities analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 6th. Investors of record on Friday, February 21st were paid a dividend of $1.82 per share. The ex-dividend date was Friday, February 21st. This represents a $7.28 annualized dividend and a yield of 2.55%. Cummins's payout ratio is 25.84%.

Institutional Trading of Cummins

Hedge funds have recently bought and sold shares of the stock. Centiva Capital LP purchased a new stake in shares of Cummins during the 3rd quarter worth approximately $205,000. Wellington Management Group LLP raised its stake in Cummins by 51.7% during the third quarter. Wellington Management Group LLP now owns 4,289 shares of the company's stock valued at $1,389,000 after purchasing an additional 1,462 shares in the last quarter. MML Investors Services LLC lifted its position in Cummins by 4.9% during the third quarter. MML Investors Services LLC now owns 16,154 shares of the company's stock valued at $5,231,000 after purchasing an additional 758 shares during the last quarter. Coldstream Capital Management Inc. grew its stake in shares of Cummins by 18.1% in the 3rd quarter. Coldstream Capital Management Inc. now owns 2,551 shares of the company's stock worth $843,000 after buying an additional 391 shares in the last quarter. Finally, Soltis Investment Advisors LLC bought a new stake in shares of Cummins in the 3rd quarter worth about $201,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

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.