Cummins (NYSE:CMI) Reaches New 52-Week Low - Should You Sell?

Key Points

• Cummins hit a new 52-week low, trading as low as $447 versus its prior close of $471.84.
• Analyst sentiment remains generally positive: 13 analysts rate the stock Buy and five Hold, giving it a “Moderate Buy” consensus and an average price target of $694.24, despite some recent target cuts.
• Quarterly EPS of $8.25 slightly beat estimates, while revenue of $9.44 billion fell short of forecasts; revenue still grew 13.5% year over year. Cummins also declared a quarterly dividend of $2.20 per share.

Cummins Inc. (NYSE:CMI - Get Free Report)'s stock price reached a new 52-week low on Thursday. The stock traded as low as $447.00 and last traded at $448.2660, with a volume of 88,124 shares traded. The stock had previously closed at $471.84.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on CMI. Evercore dropped their price objective on shares of Cummins from $845.00 to $782.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. Citigroup cut their target price on shares of Cummins from $790.00 to $630.00 and set a "buy" rating for the company in a report on Monday, October 12th. Wall Street Zen cut Cummins from a "buy" rating to a "hold" rating in a report on Monday. Sanford C. Bernstein reissued a "market perform" rating and set a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. Finally, DA Davidson lifted their target price on shares of Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $694.24.

Cummins Trading Down 1.8%

The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $63.76 billion, a PE ratio of 23.67, a PEG ratio of 1.32 and a beta of 1.26. The business's 50-day moving average is $531.57 and its two-hundred day moving average is $600.85.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported $8.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.21 by $0.04. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company had revenue of $9.44 billion for the quarter, compared to analyst estimates of $9.87 billion. During the same quarter last year, the company posted $5.59 earnings per share. The business's quarterly revenue was up 13.5% compared to the same quarter last year. On average, analysts anticipate that Cummins Inc. will post 29.98 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be paid a dividend of $2.20 per share. The ex-dividend date is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a yield of 1.9%. Cummins's dividend payout ratio is currently 44.97%.

Insider Transactions at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the transaction, the vice president directly owned 4,479 shares in the company, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in CMI. BlackRock Inc. acquired a new position in shares of Cummins in the second quarter valued at approximately $8,204,241,000. Bank of America Corp DE bought a new stake in Cummins during the second quarter valued at $1,408,353,000. Bank of New York Mellon Corp bought a new stake in shares of Cummins during the 2nd quarter valued at about $973,198,000. Robeco Institutional Asset Management B.V. grew its position in shares of Cummins by 6.4% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock worth $530,405,000 after buying an additional 62,107 shares during the period. Finally, Legal & General Group Plc acquired a new position in shares of Cummins during the second quarter valued at about $666,635,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

About Cummins

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins' product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.

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