JPMorgan Chase & Co. Increases Cummins (NYSE:CMI) Price Target to $460.00

Key Points

• JPMorgan Chase & Co. has raised the price target for Cummins (NYSE:CMI) from $400 to $460, indicating a potential upside of 11.63% from the current stock price.
• Multiple analysts have varying ratings for Cummins, with one strong buy, ten buys, and a consensus rating of "Moderate Buy".
• The company's stock recently traded at $412.08, reflecting a modest increase, with a 12-month range between $260.02 and $440.51.

Cummins (NYSE:CMI - Get Free Report) had its price target lifted by investment analysts at JPMorgan Chase & Co. from $400.00 to $460.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 11.63% from the stock's current price.

A number of other research analysts have also recently commented on the stock. Weiss Ratings restated a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Evercore ISI reissued an "outperform" rating on shares of Cummins in a report on Tuesday, August 19th. Citigroup raised their price target on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a report on Tuesday, September 23rd. Truist Financial raised their price target on shares of Cummins from $380.00 to $434.00 and gave the company a "hold" rating in a report on Wednesday, October 8th. Finally, Zacks Research raised shares of Cummins from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $407.43.

Cummins Stock Performance

Shares of NYSE CMI traded up $3.08 during mid-day trading on Tuesday, hitting $412.08. The company had a trading volume of 76,077 shares, compared to its average volume of 866,951. Cummins has a 12 month low of $260.02 and a 12 month high of $440.51. The firm has a market cap of $56.78 billion, a P/E ratio of 19.36, a PEG ratio of 1.99 and a beta of 1.04. The business's 50-day simple moving average is $408.16 and its 200-day simple moving average is $350.37. 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 (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period last year, the business earned $5.26 earnings per share. As a group, analysts predict that Cummins will post 22.54 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Mark Andrew Smith sold 8,000 shares of the company's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $439.30, for a total value of $3,514,400.00. Following the sale, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $13,873,972.60. This represents a 20.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the completion of the transaction, the vice president owned 7,693 shares in the company, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 43,119 shares of company stock worth $17,674,285 in the last ninety days. 0.41% of the stock is owned by insiders.

Institutional Trading of Cummins

Institutional investors and hedge funds have recently made changes to their positions in the company. Osterweis Capital Management Inc. bought a new stake in shares of Cummins during the 2nd quarter worth approximately $31,000. Olde Wealth Management LLC purchased a new position in Cummins during the first quarter worth about $30,000. Accredited Wealth Management LLC bought a new stake in Cummins in the first quarter worth about $31,000. Opal Wealth Advisors LLC bought a new stake in Cummins in the first quarter worth about $37,000. Finally, Richardson Financial Services Inc. bought a new stake in shares of Cummins in the first quarter valued at approximately $39,000. 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.

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