Cummins Inc. (NYSE:CMI) Given Average Recommendation of “Hold” by Brokerages

Shares of Cummins Inc. (NYSE:CMI) have earned a consensus rating of “Hold” from the twelve analysts that are currently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $358.08.

Several equities research analysts have recently weighed in on CMI shares. Evercore ISI lowered their target price on shares of Cummins from $451.00 to $419.00 and set an “outperform” rating on the stock in a report on Monday, May 19th. Morgan Stanley upped their price objective 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. The Goldman Sachs Group raised shares of Cummins from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $410.00 to $431.00 in a report on Tuesday, May 27th. UBS Group downgraded Cummins from a “buy” rating to a “sell” rating and reduced their target price for the stock from $400.00 to $240.00 in a report on Monday, April 7th. Finally, JPMorgan Chase & Co. increased their price target on Cummins from $308.00 to $320.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 6th.

Insider Buying and Selling at Cummins

In other news, Director John H. Stone purchased 1,000 shares of the firm’s stock in a transaction that occurred on Friday, May 16th. The shares were acquired at an average price of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the acquisition, the director directly owned 2,441 shares in the company, valued at approximately $810,607.28. The trade was a 69.40% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.41% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Jacobs & Co. CA lifted its holdings in Cummins by 0.9% in the second quarter. Jacobs & Co. CA now owns 34,843 shares of the company’s stock valued at $11,411,000 after buying an additional 309 shares during the period. Central Pacific Bank Trust Division raised its position in shares of Cummins by 5.6% during the 2nd quarter. Central Pacific Bank Trust Division now owns 861 shares of the company’s stock valued at $282,000 after acquiring an additional 46 shares during the last quarter. Kera Capital Partners Inc. acquired a new position in shares of Cummins in the 2nd quarter valued at $389,000. AG2R LA Mondiale Gestion D Actifs bought a new position in shares of Cummins in the 1st quarter worth $1,743,000. Finally, 1248 Management LLC bought a new position in shares of Cummins in the 1st quarter worth $102,000. Institutional investors own 83.46% of the company’s stock.

Cummins Stock Performance

NYSE:CMI opened at $333.15 on Thursday. The firm has a market capitalization of $45.89 billion, a PE ratio of 16.57, a price-to-earnings-growth ratio of 1.98 and a beta of 1.03. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.40. Cummins has a 12-month low of $260.02 and a 12-month high of $387.90. The firm has a 50-day moving average price of $318.01 and a 200 day moving average price of $332.11.

Cummins (NYSE:CMI) last posted its earnings results on Monday, May 5th. The company reported $5.96 EPS for the quarter, topping the consensus estimate of $4.92 by $1.04. Cummins had a return on equity of 26.88% and a net margin of 8.20%. The business had revenue of $8.17 billion during the quarter, compared to the consensus estimate of $8.22 billion. During the same quarter last year, the company earned $5.08 EPS. Cummins’s revenue was down 2.7% on a year-over-year basis. Research analysts anticipate that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Shareholders of record on Friday, May 23rd were given a $1.82 dividend. The ex-dividend date of this dividend was Friday, May 23rd. This represents a $7.28 dividend on an annualized basis and a yield of 2.19%. Cummins’s payout ratio is 36.22%.

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.