Cummins (NYSE:CMI) Hits New 1-Year High - Time to Buy?

Key Points

• Cummins Inc. reached a new 52-week high of $408.38 during trading, showing strong investor interest with a trading volume of 983,604 shares.
• Analysts have recently upgraded their ratings for Cummins, with Goldman Sachs raising the target price from $410.00 to $431.00 and changing their rating to "buy."
• The company announced an increase in its quarterly dividend from $1.82 to $2.00, reflecting a positive outlook with an annualized yield of 2.0%.

Shares of Cummins Inc. (NYSE:CMI - Get Free Report) reached a new 52-week high during trading on Thursday . The company traded as high as $408.38 and last traded at $406.77, with a volume of 983604 shares traded. The stock had previously closed at $399.06.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Wolfe Research raised shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Citigroup boosted their target price on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a research note on Monday, August 11th. Truist Financial upped their price objective 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. Finally, Robert W. Baird upped their price objective on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat.com, Cummins presently has a consensus rating of "Hold" and a consensus target price of $370.83.

Cummins Stock Performance

The firm's fifty day moving average price is $347.51 and its 200 day moving average price is $332.91. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $54.90 billion, a price-to-earnings ratio of 18.73, a price-to-earnings-growth ratio of 1.95 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The company had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's quarterly revenue was down 1.7% on a year-over-year basis. During the same period in the prior year, the business earned $5.26 EPS. Analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 22nd will be given a $2.00 dividend. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 2.0%. Cummins's payout ratio is 34.23%.

Insider Activity at Cummins

In related news, VP Jennifer Mary Bush sold 520 shares of the stock in a transaction on Friday, August 8th. The shares were sold at an average price of $388.13, for a total value of $201,827.60. Following the transaction, the vice president directly owned 15,130 shares of the company's stock, valued at $5,872,406.90. This trade represents a 3.32% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the transaction, the vice president directly owned 20,738 shares in the company, valued at $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 22,872 shares of company stock valued at $9,107,105. Corporate insiders own 0.41% of the company's stock.

Institutional Trading of Cummins

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in Cummins by 2.0% during the 2nd quarter. Vanguard Group Inc. now owns 17,628,149 shares of the company's stock worth $5,773,219,000 after purchasing an additional 344,680 shares during the period. State Street Corp lifted its stake in shares of Cummins by 1.4% in the second quarter. State Street Corp now owns 6,539,191 shares of the company's stock valued at $2,141,585,000 after purchasing an additional 92,073 shares during the period. Geode Capital Management LLC lifted its stake in shares of Cummins by 1.3% in the second quarter. Geode Capital Management LLC now owns 3,499,240 shares of the company's stock valued at $1,141,138,000 after purchasing an additional 43,720 shares during the period. Fisher Asset Management LLC increased its holdings in Cummins by 4.5% during the 2nd quarter. Fisher Asset Management LLC now owns 3,275,045 shares of the company's stock valued at $1,072,578,000 after acquiring an additional 142,058 shares in the last quarter. Finally, Northern Trust Corp increased its holdings in Cummins by 1.2% during the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock valued at $597,170,000 after acquiring an additional 22,202 shares in the last quarter. Institutional investors and hedge funds 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.