Cummins (NYSE:CMI) Hits New 52-Week High – Still a Buy?

Cummins Inc. (NYSE:CMI)’s share price hit a new 52-week high on Monday . The company traded as high as $532.20 and last traded at $531.7390, with a volume of 98470 shares. The stock had previously closed at $522.03.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Sanford C. Bernstein reiterated a “market perform” rating and issued a $475.00 target price on shares of Cummins in a research note on Friday, November 7th. Raymond James Financial upgraded Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 price target for the company in a report on Monday, December 22nd. Weiss Ratings reiterated a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Argus boosted their target price on shares of Cummins from $459.00 to $573.00 and gave the company a “buy” rating in a report on Tuesday, November 25th. Finally, Truist Financial upped their price target on shares of Cummins from $628.00 to $653.00 and gave the stock a “buy” rating in a research report on Thursday, December 18th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $492.75.

Cummins Stock Up 1.6%

The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52. The firm has a 50 day moving average price of $487.29 and a two-hundred day moving average price of $421.17. The company has a market capitalization of $73.19 billion, a price-to-earnings ratio of 27.50, a P/E/G ratio of 1.82 and a beta of 1.12.

Cummins (NYSE:CMI) last released its earnings results on Thursday, November 6th. The company reported $5.59 EPS for the quarter, beating the consensus estimate of $4.83 by $0.76. The company had revenue of $8.32 billion during the quarter, compared to analysts’ expectations of $7.97 billion. Cummins had a return on equity of 26.02% and a net margin of 7.95%.The business’s revenue was down 1.6% on a year-over-year basis. During the same period in the prior year, the business posted $5.86 EPS. As a group, sell-side analysts expect that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, December 4th. Stockholders of record on Friday, November 21st were given a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, November 21st. This represents a $8.00 annualized dividend and a dividend yield of 1.5%. Cummins’s dividend payout ratio (DPR) is presently 41.52%.

Insider Buying and Selling at Cummins

In other Cummins news, CFO Mark Andrew Smith sold 13,110 shares of the company’s stock in a transaction that occurred on Thursday, November 6th. The stock was sold at an average price of $470.66, for a total transaction of $6,170,352.60. Following the sale, the chief financial officer owned 31,582 shares in the company, valued at $14,864,384.12. This represents a 29.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Brett Michael Merritt sold 1,450 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total value of $709,514.00. Following the completion of the sale, the insider owned 9,271 shares of the company’s stock, valued at $4,536,485.72. This trade represents a 13.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,330 shares of company stock worth $9,135,364 over the last quarter. 0.41% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cummins

A number of institutional investors have recently modified their holdings of the business. Norges Bank acquired a new position in Cummins in the second quarter valued at approximately $505,941,000. Boston Partners acquired a new position in Cummins during the 3rd quarter valued at approximately $473,471,000. London Co. of Virginia bought a new position in Cummins during the 3rd quarter worth $231,732,000. American Century Companies Inc. increased its position in Cummins by 138.8% in the second quarter. American Century Companies Inc. now owns 909,653 shares of the company’s stock worth $297,912,000 after buying an additional 528,689 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in shares of Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company’s stock valued at $612,715,000 after acquiring an additional 488,430 shares during the period. Institutional investors own 83.46% of the company’s stock.

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.