The Goldman Sachs Group Upgrades Cummins (NYSE:CMI) to "Buy"

Cummins (NYSE:CMI - Get Free Report) was upgraded by equities research analysts at The Goldman Sachs Group from a "neutral" rating to a "buy" rating in a research note issued on Tuesday, MarketBeat Ratings reports. The brokerage presently has a $431.00 price target on the stock, up from their previous price target of $410.00. The Goldman Sachs Group's target price would suggest a potential upside of 32.76% from the company's previous close.

CMI has been the subject of a number of other reports. Truist Financial decreased their price objective on Cummins from $420.00 to $338.00 and set a "hold" rating for the company in a research note on Tuesday, April 8th. Citigroup raised their target price on Cummins from $320.00 to $350.00 and gave the stock a "buy" rating in a report on Monday, May 12th. Robert W. Baird dropped their target price on Cummins from $407.00 to $315.00 and set a "neutral" rating on the stock in a report on Tuesday, April 15th. JPMorgan Chase & Co. raised their target price on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a report on Tuesday, May 6th. Finally, Wall Street Zen lowered Cummins from a "buy" rating to a "hold" rating in a report on Tuesday, March 25th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $357.25.

Cummins Stock Up 0.5%

Shares of CMI traded up $1.61 during midday trading on Tuesday, reaching $324.65. 584,456 shares of the stock were exchanged, compared to its average volume of 802,494. Cummins has a 52 week low of $260.02 and a 52 week high of $387.90. 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 company's 50 day moving average is $304.23 and its two-hundred day moving average is $340.41. The company has a market capitalization of $44.72 billion, a P/E ratio of 11.52, a PEG ratio of 2.19 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Monday, May 5th. The company reported $5.96 earnings per share for the quarter, topping analysts' consensus estimates of $4.92 by $1.04. The firm had revenue of $8.17 billion during the quarter, compared to analysts' expectations of $8.22 billion. Cummins had a return on equity of 27.12% and a net margin of 11.57%. The firm's quarterly revenue was down 2.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.08 EPS. On average, sell-side analysts anticipate that Cummins will post 22.54 earnings per share for the current year.

Insiders Place Their Bets

In other Cummins news, Director John H. Stone bought 1,000 shares of the stock in a transaction on Friday, May 16th. The shares were bought at an average price of $332.08 per share, with a total value of $332,080.00. Following the purchase, the director now directly owns 2,441 shares in the company, valued at $810,607.28. This trade represents a 69.40% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.41% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cummins

A number of institutional investors and hedge funds have recently bought and sold shares of CMI. BankPlus Trust Department acquired a new position in Cummins during the fourth quarter worth about $26,000. Compass Financial Services Inc purchased a new position in Cummins during the fourth quarter worth approximately $27,000. Meeder Asset Management Inc. lifted its position in Cummins by 208.0% during the fourth quarter. Meeder Asset Management Inc. now owns 77 shares of the company's stock worth $27,000 after buying an additional 52 shares in the last quarter. TCTC Holdings LLC purchased a new position in Cummins during the fourth quarter worth approximately $28,000. Finally, SBI Securities Co. Ltd. purchased a new position in Cummins during the fourth quarter worth approximately $30,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

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.