Truist Financial Issues Positive Forecast for Cummins (NYSE:CMI) Stock Price

Key Points

• Truist Financial raised its price target on Cummins to $901 from $815 and kept a buy rating, implying about 32% upside from the prior close.
• Other analysts are also bullish on the stock, with several firms lifting targets; the consensus view is now Moderate Buy with an average price target of $738.
• Cummins reported better-than-expected quarterly results, posting EPS of $6.15 versus $5.63 expected and revenue of $8.40 billion, while the stock was trading around $681.59 after a 4.4% drop.

Cummins (NYSE:CMI - Get Free Report) had its price objective lifted by equities research analysts at Truist Financial from $815.00 to $901.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Truist Financial's price target points to a potential upside of 32.19% from the company's previous close.

A number of other brokerages have also recently weighed in on CMI. UBS Group reaffirmed a "buy" rating on shares of Cummins in a research report on Wednesday, June 17th. Wells Fargo & Company boosted their price objective on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 17th. Raymond James Financial upped their target price on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Barclays increased their target price on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, Robert W. Baird set a $700.00 price target on Cummins in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $738.00.

Cummins Trading Down 4.4%

NYSE CMI opened at $681.59 on Thursday. The firm has a market capitalization of $94.05 billion, a price-to-earnings ratio of 35.37, a PEG ratio of 1.74 and a beta of 1.23. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins has a one year low of $325.25 and a one year high of $737.76. The company's 50 day moving average price is $676.64 and its 200 day moving average price is $602.12.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the previous year, the firm earned $5.96 earnings per share. Cummins's revenue for the quarter was up 2.7% on a year-over-year basis. On average, sell-side analysts predict that Cummins will post 29.31 EPS for the current year.

Insider Activity at Cummins

In other Cummins news, EVP Bonnie J. Fetch sold 652 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $700.19, for a total value of $456,523.88. Following the transaction, the executive vice president owned 11,679 shares of the company's stock, valued at $8,177,519.01. This trade represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Donald G. Jackson sold 730 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the transaction, the vice president directly owned 8,316 shares of the company's stock, valued at $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 13,579 shares of company stock valued at $9,377,684 in the last ninety days. 0.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Thompson Investment Management Inc. acquired a new position in Cummins during the 4th quarter valued at about $26,000. Activest Wealth Management boosted its position in shares of Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after buying an additional 43 shares during the period. Cedar Mountain Advisors LLC grew its stake in shares of Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after purchasing an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC acquired a new position in Cummins during the 4th quarter valued at about $27,000. Finally, Key Financial Inc increased its stake in shares of Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after acquiring an additional 20 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Company Profile

Cummins Inc NYSE: CMI is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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