Cummins (NYSE:CMI) Hits New 52-Week Low – Time to Sell?

Cummins Inc. (NYSE:CMI)’s stock price reached a new 52-week low during trading 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

CMI has been the topic of several recent analyst reports. JPMorgan Chase & Co. dropped their target price on shares of Cummins from $690.00 to $600.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 23rd. Zacks Research lowered Cummins from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. Wall Street Zen cut shares of Cummins from a “buy” rating to a “hold” rating in a research report on Monday. Morgan Stanley increased their price target on shares of Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Finally, Evercore reduced their price target on Cummins from $845.00 to $782.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 11th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Cummins presently has a consensus rating of “Moderate Buy” and an average target price of $694.24.

Cummins Trading Down 1.8%

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

Cummins (NYSE:CMI) last posted its quarterly earnings results 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. The firm had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.87 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. Cummins’s quarterly revenue was up 13.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $5.59 EPS. On average, sell-side analysts forecast that Cummins Inc. will post 29.98 EPS for the current fiscal year.

Cummins Dividend Announcement

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

Insider Activity

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction that occurred 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 completion of the sale, the vice president directly owned 4,479 shares in the company, valued at $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cummins

Institutional investors have recently made changes to their positions in the business. Valmark Advisers Inc. grew its holdings in Cummins by 1.9% during the first quarter. Valmark Advisers Inc. now owns 877 shares of the company’s stock valued at $472,000 after purchasing an additional 16 shares during the period. Guardian Partners Inc. lifted its position in shares of Cummins by 1.0% in the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company’s stock worth $852,000 after buying an additional 16 shares in the last quarter. Legacy Financial Advisors Inc. raised its holdings in shares of Cummins by 2.0% during the 2nd quarter. Legacy Financial Advisors Inc. now owns 955 shares of the company’s stock worth $681,000 after acquiring an additional 19 shares in the last quarter. Sage Private Wealth Group LLC lifted its position in Cummins by 3.0% during the third quarter. Sage Private Wealth Group LLC now owns 660 shares of the company’s stock valued at $341,000 after purchasing an additional 19 shares during the last quarter. Finally, Ariadne Wealth Management LP grew its position in Cummins by 5.1% in the first quarter. Ariadne Wealth Management LP now owns 415 shares of the company’s stock worth $223,000 after acquiring an additional 20 shares in the last quarter. Institutional investors own 83.46% of the company’s stock.

Cummins Company Profile

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.