Brokerages Set Cummins Inc. (NYSE:CMI) Target Price at $677.87

Shares of Cummins Inc. (NYSE:CMI) have received an average rating of “Moderate Buy” from the sixteen ratings firms that are covering the company, Marketbeat.com reports. Five investment analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $700.50.

A number of research analysts recently commented on CMI shares. Morgan Stanley boosted their price objective on shares of Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Barclays increased their target price on shares of Cummins from $610.00 to $760.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Raymond James Financial boosted their price target on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a report on Tuesday. Wall Street Zen downgraded shares of Cummins from a “strong-buy” rating to a “buy” rating in a research note on Sunday, March 8th. Finally, Citigroup increased their price objective on Cummins from $710.00 to $770.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th.

Insider Activity

In other news, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the transaction, the vice president owned 15,807 shares in the company, valued at $8,873,101.38. This represents a 20.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Marvin Boakye sold 3,481 shares of the firm’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the transaction, the vice president owned 8,508 shares in the company, valued at $5,784,589.20. This represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 17,633 shares of company stock valued at $11,653,357. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cummins

Hedge funds have recently bought and sold shares of the business. Thompson Investment Management Inc. acquired a new stake in shares of Cummins in the fourth quarter worth about $26,000. Activest Wealth Management increased its holdings in shares of 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 acquiring an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC raised its stake in shares of Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock valued at $26,000 after acquiring an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC acquired a new stake in Cummins in the 4th quarter worth approximately $27,000. Finally, Key Financial Inc boosted its position in Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after purchasing an additional 20 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Stock Performance

Shares of CMI stock opened at $667.47 on Friday. The company has a market capitalization of $92.10 billion, a price-to-earnings ratio of 34.64, a P/E/G ratio of 1.63 and a beta of 1.27. Cummins has a 1-year low of $307.90 and a 1-year high of $718.08. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The stock’s fifty day simple moving average is $621.63 and its 200-day simple moving average is $569.33.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating the consensus estimate of $5.63 by $0.52. The company had revenue of $8.40 billion for the quarter, compared to analysts’ expectations of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $5.96 EPS. On average, sell-side analysts predict that Cummins will post 29.4 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Friday, May 22nd will be issued a $2.00 dividend. The ex-dividend date is Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins’s dividend payout ratio is currently 41.52%.

About Cummins

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.