Cummins (NYSE:CMI) Rating Increased to Buy at Melius Research

Melius Research upgraded shares of Cummins (NYSE:CMI) from a hold rating to a buy rating in a research note published on Wednesday morning,Benzinga reports. Melius Research currently has $500.00 target price on the stock.

Other research analysts have also issued research reports about the company. Citigroup raised their price objective on Cummins from $380.00 to $425.00 and gave the company a “buy” rating in a research report on Wednesday, August 6th. Truist Financial increased their price target on shares of Cummins from $342.00 to $380.00 and gave the company a “hold” rating in a report on Thursday, August 7th. Morgan Stanley increased their price target on shares of Cummins from $340.00 to $350.00 and gave the company an “overweight” rating in a report on Tuesday, May 6th. Wells Fargo & Company raised shares of Cummins to an “overweight” rating in a report on Monday, August 11th. Finally, Melius raised shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target for the company in a report on Wednesday. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $389.29.

Cummins Trading Down 0.9%

Shares of Cummins stock opened at $391.70 on Wednesday. The firm has a market cap of $53.97 billion, a price-to-earnings ratio of 18.42, a PEG ratio of 1.93 and a beta of 1.02. The business has a 50-day moving average price of $367.86 and a 200-day moving average price of $336.03. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins has a twelve month low of $260.02 and a twelve month high of $408.38.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating analysts’ consensus estimates of $5.21 by $1.22. The firm had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business’s quarterly revenue was down 1.7% compared to the same quarter last year. During the same quarter last year, the business posted $5.26 earnings per share. Equities research analysts anticipate that Cummins will post 22.54 EPS for the current fiscal year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be paid a $2.00 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This is an increase from Cummins’s previous quarterly dividend of $1.82. This represents a $8.00 annualized dividend and a yield of 2.0%. Cummins’s payout ratio is 37.61%.

Insiders Place Their Bets

In other news, Director Karen H. Quintos sold 1,307 shares of the firm’s stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director directly owned 5,227 shares of the company’s stock, valued at approximately $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Luther E. Peters sold 4,850 shares of the firm’s stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the transaction, the vice president directly owned 7,693 shares in the company, valued at approximately $2,994,038.67. This trade represents a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 26,039 shares of company stock valued at $10,385,075 over the last quarter. Corporate insiders own 0.41% of the company’s stock.

Hedge Funds Weigh In On Cummins

A number of institutional investors have recently modified their holdings of CMI. Norges Bank purchased a new position in Cummins during the second quarter valued at approximately $505,941,000. GAMMA Investing LLC increased its holdings in Cummins by 38,220.5% during the first quarter. GAMMA Investing LLC now owns 1,191,385 shares of the company’s stock valued at $373,428,000 after buying an additional 1,188,276 shares during the period. Raymond James Financial Inc. increased its holdings in Cummins by 152.3% during the first quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company’s stock valued at $424,414,000 after buying an additional 817,384 shares during the period. American Century Companies Inc. increased its holdings in Cummins by 138.8% during the second quarter. American Century Companies Inc. now owns 909,653 shares of the company’s stock valued at $297,912,000 after buying an additional 528,689 shares during the period. Finally, Ontario Teachers Pension Plan Board increased its holdings in Cummins by 5,158.9% during the second quarter. Ontario Teachers Pension Plan Board now owns 435,960 shares of the company’s stock valued at $142,777,000 after buying an additional 427,670 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

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.