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

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%.

Cummins Inc. (NYSE:CMI - Get Free Report) shares hit a new 52-week high during trading on Thursday . The stock 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.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Evercore ISI cut their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a report on Monday, May 19th. Robert W. Baird increased their target price on Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. JPMorgan Chase & Co. lifted their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a report on Tuesday, May 6th. Barclays raised their price objective on Cummins from $381.00 to $387.00 and gave the stock an "equal weight" rating in a research report on Monday, July 21st. Finally, Wolfe Research upgraded Cummins from a "peer perform" rating to an "outperform" rating in a report on Monday, August 11th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $370.83.

Cummins Stock Up 0.4%

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The business's 50 day moving average is $347.51 and its 200-day moving average is $332.72. The firm has a market capitalization of $55.26 billion, a price-to-earnings ratio of 18.85, a price-to-earnings-growth ratio of 1.95 and a beta of 1.02.

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

Cummins Increases Dividend

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

Insider Buying and Selling

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

Institutional Inflows and Outflows

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

About Cummins

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.