Cummins (NYSE:CMI) Reaches New 12-Month High – Time to Buy?

Shares of Cummins Inc. (NYSE:CMI) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $515.83 and last traded at $513.4890, with a volume of 124622 shares trading hands. The stock had previously closed at $510.65.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Citigroup raised their price objective on Cummins from $500.00 to $530.00 and gave the company a “buy” rating in a research report on Friday, November 7th. Argus lifted their price target on shares of Cummins from $459.00 to $573.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. Barclays upped their price objective on shares of Cummins from $430.00 to $515.00 and gave the stock an “equal weight” rating in a report on Tuesday, November 11th. Truist Financial set a $628.00 target price on shares of Cummins and gave the company a “buy” rating in a report on Monday, November 24th. Finally, Wells Fargo & Company started coverage on Cummins in a research report on Thursday, November 13th. They issued an “overweight” rating and a $599.00 price target on the stock. Eleven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $479.53.

Cummins Trading Up 5.1%

The stock has a 50-day moving average price of $454.11 and a two-hundred day moving average price of $396.76. The stock has a market capitalization of $72.54 billion, a PE ratio of 27.27, a PEG ratio of 2.00 and a beta of 1.11. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.11 and a current ratio of 1.77.

Cummins (NYSE:CMI) last released its earnings results on Thursday, November 6th. The company reported $5.59 EPS for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. The company had revenue of $8.32 billion for the quarter, compared to analysts’ expectations of $7.97 billion. Cummins had a net margin of 7.95% and a return on equity of 26.02%. The firm’s revenue was down 1.6% compared to the same quarter last year. During the same quarter last year, the business earned $5.86 EPS. As a group, equities analysts forecast that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 4th. Investors of record on Friday, November 21st were issued a $2.00 dividend. The ex-dividend date of this dividend was Friday, November 21st. This represents a $8.00 annualized dividend and a yield of 1.5%. Cummins’s dividend payout ratio is currently 41.52%.

Insiders Place Their Bets

In other news, CFO Mark Andrew Smith sold 13,110 shares of Cummins stock in a transaction dated Thursday, November 6th. The stock was sold at an average price of $470.66, for a total value of $6,170,352.60. Following the sale, the chief financial officer directly owned 31,582 shares of the company’s stock, valued at approximately $14,864,384.12. The trade was a 29.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Jennifer Rumsey sold 4,570 shares of the stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total value of $2,165,677.30. Following the transaction, the chief executive officer directly owned 42,880 shares of the company’s stock, valued at approximately $20,320,403.20. The trade was a 9.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 36,410 shares of company stock worth $16,424,574 in the last three months. 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 made changes to their positions in CMI. Flagship Wealth Advisors LLC bought a new position in shares of Cummins in the 3rd quarter valued at about $28,000. Accredited Wealth Management LLC bought a new stake in Cummins during the first quarter worth approximately $31,000. Osterweis Capital Management Inc. purchased a new stake in Cummins during the second quarter valued at approximately $31,000. Guerra Advisors Inc bought a new stake in shares of Cummins in the 3rd quarter valued at approximately $36,000. Finally, Salomon & Ludwin LLC lifted its stake in shares of Cummins by 1,333.3% in the 3rd quarter. Salomon & Ludwin LLC now owns 86 shares of the company’s stock valued at $37,000 after purchasing an additional 80 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

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.