Cummins Inc. (NYSE:CMI) Receives Average Recommendation of “Hold” from Analysts

Shares of Cummins Inc. (NYSE:CMI) have earned a consensus recommendation of “Hold” from the ten research firms that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, three have given a hold recommendation and five have issued a buy recommendation on the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $276.10.

CMI has been the topic of a number of recent analyst reports. Evercore ISI increased their price objective on Cummins from $231.00 to $244.00 and gave the company an “in-line” rating in a report on Tuesday, February 20th. Citigroup raised their price target on Cummins from $265.00 to $285.00 and gave the stock a “buy” rating in a research note on Monday, February 12th. Bank of America downgraded Cummins from a “neutral” rating to an “underperform” rating and dropped their price target for the stock from $243.00 to $225.00 in a research note on Friday, January 19th. Truist Financial initiated coverage on Cummins in a research note on Thursday, March 14th. They set a “hold” rating and a $303.00 price target on the stock. Finally, UBS Group upgraded Cummins from a “neutral” rating to a “buy” rating and raised their price target for the stock from $254.00 to $321.00 in a research note on Friday, March 15th.

Cummins Trading Down 1.0 %

CMI opened at $295.78 on Tuesday. Cummins has a 12 month low of $203.18 and a 12 month high of $304.24. The stock has a market capitalization of $40.45 billion, a price-to-earnings ratio of 57.10, a PEG ratio of 2.03 and a beta of 1.04. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.18 and a quick ratio of 0.74. The business has a fifty day moving average price of $276.99 and a 200 day moving average price of $246.85.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, February 6th. The company reported $4.14 EPS for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a return on equity of 25.68% and a net margin of 2.16%. The company had revenue of $8.54 billion for the quarter, compared to analyst estimates of $8.10 billion. During the same period in the previous year, the firm earned $4.52 earnings per share. The company’s revenue for the quarter was up 9.9% compared to the same quarter last year. Sell-side analysts expect that Cummins will post 18.29 earnings per share for the current fiscal year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were paid a $1.68 dividend. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $6.72 annualized dividend and a dividend yield of 2.27%. Cummins’s dividend payout ratio (DPR) is currently 129.73%.

Insider Buying and Selling at Cummins

In other Cummins news, VP Sharon R. Barner sold 11,000 shares of Cummins stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $262.16, for a total value of $2,883,760.00. Following the transaction, the vice president now directly owns 17,874 shares in the company, valued at approximately $4,685,847.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, VP Sharon R. Barner sold 11,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $262.16, for a total value of $2,883,760.00. Following the completion of the sale, the vice president now directly owns 17,874 shares of the company’s stock, valued at approximately $4,685,847.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Daniel William Fisher purchased 562 shares of Cummins stock in a transaction dated Tuesday, February 27th. The stock was acquired at an average cost of $266.57 per share, with a total value of $149,812.34. Following the completion of the acquisition, the director now directly owns 1,068 shares in the company, valued at $284,696.76. The disclosure for this purchase can be found here. In the last ninety days, insiders have sold 51,289 shares of company stock worth $13,576,838. 0.56% of the stock is currently owned by insiders.

Institutional Trading of Cummins

Hedge funds have recently modified their holdings of the business. Balentine LLC raised its holdings in Cummins by 3.3% during the third quarter. Balentine LLC now owns 3,929 shares of the company’s stock worth $898,000 after purchasing an additional 127 shares during the last quarter. Allen Mooney & Barnes Investment Advisors LLC acquired a new position in Cummins during the third quarter worth $9,048,000. Sequoia Financial Advisors LLC raised its holdings in Cummins by 200.9% during the fourth quarter. Sequoia Financial Advisors LLC now owns 5,790 shares of the company’s stock worth $1,387,000 after purchasing an additional 3,866 shares during the last quarter. Capital Advisors Inc. OK acquired a new position in Cummins during the fourth quarter worth $24,915,000. Finally, SG Americas Securities LLC raised its holdings in Cummins by 227.6% during the fourth quarter. SG Americas Securities LLC now owns 24,281 shares of the company’s stock worth $5,817,000 after purchasing an additional 16,869 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

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.