Cummins Inc. (NYSE:CMI) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of Cummins Inc. (NYSE:CMI) have been assigned a consensus recommendation of “Moderate Buy” from the nineteen ratings firms that are presently covering the company, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold recommendation and twelve have given a buy recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $476.75.

CMI has been the topic of a number of research analyst reports. UBS Group raised Cummins from a “sell” rating to a “neutral” rating in a report on Tuesday. Wells Fargo & Company initiated coverage on shares of Cummins in a report on Thursday, November 13th. They issued an “overweight” rating and a $599.00 target price on the stock. Argus upped their target price on shares of Cummins from $459.00 to $573.00 and gave the stock a “buy” rating in a research report on Tuesday. JPMorgan Chase & Co. lifted their price target on shares of Cummins from $400.00 to $460.00 and gave the company a “neutral” rating in a report on Tuesday, October 14th. Finally, Melius Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd.

Insider Buying and Selling at Cummins

In other Cummins news, insider Brett Michael Merritt sold 1,450 shares of Cummins stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total value of $709,514.00. Following the sale, the insider owned 9,271 shares of the company’s stock, valued at $4,536,485.72. The trade was a 13.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Jennifer Rumsey sold 4,570 shares of the company’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $473.89, for a total value of $2,165,677.30. Following the sale, the chief executive officer directly owned 42,880 shares in the company, valued at $20,320,403.20. This trade represents a 9.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 36,410 shares of company stock worth $16,424,574 in the last quarter. 0.41% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cummins

Several institutional investors have recently bought and sold shares of the business. Motley Fool Asset Management LLC increased its holdings in shares of Cummins by 9.7% during the 2nd quarter. Motley Fool Asset Management LLC now owns 7,018 shares of the company’s stock worth $2,298,000 after buying an additional 623 shares during the last quarter. Applied Finance Capital Management LLC lifted its holdings in Cummins by 14.4% in the second quarter. Applied Finance Capital Management LLC now owns 60,797 shares of the company’s stock valued at $19,910,000 after acquiring an additional 7,656 shares during the last quarter. Fox Run Management L.L.C. purchased a new position in Cummins in the first quarter worth approximately $2,749,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in Cummins by 6.7% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 277,958 shares of the company’s stock worth $91,054,000 after acquiring an additional 17,566 shares during the last quarter. Finally, Invesco Ltd. increased its stake in Cummins by 11.6% during the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company’s stock worth $381,129,000 after acquiring an additional 126,362 shares during the last quarter. Institutional investors own 83.46% of the company’s stock.

Cummins Trading Down 0.0%

Shares of Cummins stock opened at $497.08 on Friday. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $500.17. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The company has a market capitalization of $68.61 billion, a P/E ratio of 23.37, a P/E/G ratio of 2.05 and a beta of 1.07. The company has a fifty day moving average of $442.27 and a 200 day moving average of $387.67.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Thursday, November 6th. The company reported $5.59 EPS for the quarter, beating the consensus estimate of $4.83 by $0.76. The business had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business’s revenue was down 1.6% on a year-over-year basis. During the same period in the previous year, the business earned $5.86 earnings per share. On average, sell-side analysts anticipate that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, November 21st will be paid a dividend of $2.00 per share. The ex-dividend date of this dividend is Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a yield of 1.6%. Cummins’s dividend payout ratio is presently 41.52%.

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.