Cummins Inc. (NYSE:CMI) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Cummins Inc. (NYSE:CMI) have been given an average rating of “Moderate Buy” by the seventeen research firms that are covering the company, MarketBeat.com reports. Six equities research analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $588.9333.

Several equities research analysts have issued reports on CMI shares. Wolfe Research lowered Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price target for the company. in a research note on Monday, January 26th. Sanford C. Bernstein set a $600.00 target price on Cummins and gave the stock a “market perform” rating in a research report on Friday, February 6th. Argus set a $696.00 target price on Cummins in a research note on Tuesday, February 10th. Wall Street Zen raised shares of Cummins from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Finally, UBS Group set a $565.00 price objective on shares of Cummins and gave the company a “neutral” rating in a research note on Friday, February 6th.

Insider Activity

In related news, insider Brett Michael Merritt sold 1,450 shares of the stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the completion of the sale, the insider directly owned 9,271 shares in the company, valued at $4,536,485.72. This represents a 13.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director William I. Miller sold 18,107 shares of Cummins stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total value of $10,811,689.70. Following the completion of the transaction, the director directly owned 34,243 shares in the company, valued at $20,446,495.30. This trade represents a 34.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.41% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cummins

Several institutional investors have recently added to or reduced their stakes in CMI. Thompson Investment Management Inc. purchased a new stake in shares of Cummins during the fourth quarter worth about $26,000. Activest Wealth Management raised its position in Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company’s stock valued at $26,000 after purchasing an additional 43 shares during the last quarter. Wellington Shields Capital Management LLC purchased a new stake in Cummins in the 4th quarter worth approximately $27,000. Kemnay Advisory Services Inc. bought a new stake in shares of Cummins in the 4th quarter worth approximately $28,000. Finally, Ares Financial Consulting LLC purchased a new position in shares of Cummins during the fourth quarter valued at approximately $29,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Cummins Price Performance

Cummins stock opened at $595.31 on Friday. The business has a 50-day simple moving average of $553.76 and a 200 day simple moving average of $474.04. Cummins has a 52 week low of $260.02 and a 52 week high of $617.98. The stock has a market cap of $82.25 billion, a price-to-earnings ratio of 29.01, a PEG ratio of 1.90 and a beta of 1.13. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter last year, the company posted $5.16 EPS. The company’s revenue for the quarter was up 1.1% on a year-over-year basis. On average, research analysts forecast that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Shareholders of record on Friday, February 20th will be given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, February 20th. Cummins’s dividend payout ratio is presently 38.99%.

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.