Cummins (NYSE:CMI) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Cummins (NYSE:CMI - Free Report) had its target price lifted by Morgan Stanley from $340.00 to $350.00 in a research report sent to investors on Tuesday morning, Marketbeat reports. Morgan Stanley currently has an overweight rating on the stock.

A number of other equities analysts have also weighed in on the stock. Evercore ISI increased their target price on shares of Cummins from $408.00 to $451.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 19th. Bank of America upgraded Cummins from an "underperform" rating to a "neutral" rating and increased their target price for the stock from $354.00 to $358.00 in a research report on Tuesday, January 14th. Truist Financial reduced their price target on Cummins from $420.00 to $338.00 and set a "hold" rating for the company in a research report on Tuesday, April 8th. JPMorgan Chase & Co. increased their price objective on Cummins from $308.00 to $320.00 and gave the stock a "neutral" rating in a report on Tuesday, May 6th. Finally, Robert W. Baird decreased their target price on shares of Cummins from $407.00 to $315.00 and set a "neutral" rating on the stock in a report on Tuesday, April 15th. One analyst has rated the stock with a sell rating, nine have given a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $352.33.

Cummins Stock Performance

CMI traded up $0.40 during trading on Tuesday, hitting $306.81. 512,986 shares of the company traded hands, compared to its average volume of 807,286. Cummins has a one year low of $260.02 and a one year high of $387.90. The stock's fifty day moving average is $304.66 and its 200 day moving average is $341.39. The company has a quick ratio of 0.80, a current ratio of 1.31 and a debt-to-equity ratio of 0.42. The firm has a market cap of $42.26 billion, a P/E ratio of 10.89, a price-to-earnings-growth ratio of 2.19 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings data on Monday, May 5th. The company reported $5.96 EPS for the quarter, beating the consensus estimate of $4.92 by $1.04. The business had revenue of $8.17 billion for the quarter, compared to the consensus estimate of $8.22 billion. Cummins had a return on equity of 27.12% and a net margin of 11.57%. Cummins's revenue for the quarter was down 2.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $5.08 earnings per share. As a group, equities analysts predict that Cummins will post 22.54 EPS for the current fiscal year.

Cummins Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 6th. Stockholders of record on Friday, February 21st were paid a $1.82 dividend. The ex-dividend date of this dividend was Friday, February 21st. This represents a $7.28 dividend on an annualized basis and a dividend yield of 2.37%. Cummins's dividend payout ratio (DPR) is 36.22%.

Institutional Trading of Cummins

Institutional investors have recently added to or reduced their stakes in the business. Mariner Investment Group LLC purchased a new stake in shares of Cummins during the fourth quarter valued at approximately $1,046,000. FMR LLC grew its holdings in Cummins by 5.7% in the 4th quarter. FMR LLC now owns 1,242,362 shares of the company's stock worth $433,087,000 after acquiring an additional 67,266 shares during the last quarter. Fayez Sarofim & Co increased its position in shares of Cummins by 72.3% in the fourth quarter. Fayez Sarofim & Co now owns 8,195 shares of the company's stock valued at $2,857,000 after acquiring an additional 3,440 shares during the period. National Bank of Canada FI boosted its holdings in shares of Cummins by 4.2% during the fourth quarter. National Bank of Canada FI now owns 81,344 shares of the company's stock worth $28,359,000 after purchasing an additional 3,298 shares during the period. Finally, Franklin Resources Inc. grew its stake in shares of Cummins by 74.2% in the third quarter. Franklin Resources Inc. now owns 233,544 shares of the company's stock worth $79,017,000 after purchasing an additional 99,464 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

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.