Cummins (NYSE:CMI) Upgraded by The Goldman Sachs Group to “Buy” Rating

The Goldman Sachs Group upgraded shares of Cummins (NYSE:CMI) from a neutral rating to a buy rating in a research report released on Tuesday, MarketBeat.com reports. They currently have $431.00 target price on the stock, up from their prior target price of $410.00.

Other analysts have also issued reports about the stock. Morgan Stanley boosted their price target on shares of Cummins from $340.00 to $350.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 6th. Evercore ISI cut their target price on shares of Cummins from $451.00 to $419.00 and set an “outperform” rating on the stock in a research note on Monday, May 19th. Wall Street Zen lowered shares of Cummins from a “buy” rating to a “hold” rating in a research note on Tuesday, March 25th. Truist Financial cut their target price on shares of Cummins from $420.00 to $338.00 and set a “hold” rating on the stock in a research note on Tuesday, April 8th. Finally, Citigroup upped their target price on shares of Cummins from $320.00 to $350.00 and gave the stock a “buy” rating in a research note on Monday, May 12th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, Cummins presently has a consensus rating of “Hold” and an average price target of $357.25.

Cummins Stock Up 2.8%

Shares of CMI opened at $326.23 on Tuesday. The firm has a market cap of $44.94 billion, a P/E ratio of 11.58, a price-to-earnings-growth ratio of 2.19 and a beta of 1.02. Cummins has a 12-month low of $260.02 and a 12-month high of $387.90. The company’s 50-day moving average price is $304.20 and its 200 day moving average price is $340.53. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Monday, May 5th. The company reported $5.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.92 by $1.04. The company had revenue of $8.17 billion for the quarter, compared to analyst estimates of $8.22 billion. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The business’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.08 earnings per share. On average, sell-side analysts forecast that Cummins will post 22.54 earnings per share for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Friday, May 23rd will be issued a $1.82 dividend. This represents a $7.28 annualized dividend and a dividend yield of 2.23%. The ex-dividend date of this dividend is Friday, May 23rd. Cummins’s payout ratio is currently 36.22%.

Insider Activity

In related news, Director John H. Stone purchased 1,000 shares of the business’s stock in a transaction dated Friday, May 16th. The stock was acquired at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the purchase, the director now directly owns 2,441 shares of the company’s stock, valued at $810,607.28. This trade represents a 69.40% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.41% of the company’s stock.

Institutional Investors Weigh In On Cummins

Several large investors have recently modified their holdings of the stock. KG&L Capital Management LLC raised its stake in shares of Cummins by 0.8% during the fourth quarter. KG&L Capital Management LLC now owns 3,749 shares of the company’s stock worth $1,296,000 after purchasing an additional 28 shares during the last quarter. Signaturefd LLC raised its stake in shares of Cummins by 0.9% during the fourth quarter. Signaturefd LLC now owns 3,313 shares of the company’s stock worth $1,155,000 after purchasing an additional 28 shares during the last quarter. Fiduciary Trust Co raised its stake in shares of Cummins by 1.2% during the fourth quarter. Fiduciary Trust Co now owns 2,456 shares of the company’s stock worth $856,000 after purchasing an additional 28 shares during the last quarter. Massachusetts Wealth Management raised its stake in shares of Cummins by 0.6% during the fourth quarter. Massachusetts Wealth Management now owns 4,812 shares of the company’s stock worth $1,677,000 after purchasing an additional 30 shares during the last quarter. Finally, Avestar Capital LLC raised its stake in shares of Cummins by 3.2% during the fourth quarter. Avestar Capital LLC now owns 987 shares of the company’s stock worth $344,000 after purchasing an additional 31 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company’s stock.

About Cummins

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.