Cummins (NYSE:CMI) Hits New 1-Year High – What’s Next?

Cummins Inc. (NYSE:CMI) hit a new 52-week high on Friday . The stock traded as high as $618.75 and last traded at $615.8310, with a volume of 37923 shares changing hands. The stock had previously closed at $610.99.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on CMI shares. Weiss Ratings reiterated a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Citigroup upped their price objective on shares of Cummins from $580.00 to $630.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Morgan Stanley reiterated an “overweight” rating and set a $675.00 price objective on shares of Cummins in a report on Friday, February 6th. Raymond James Financial upped their price objective on shares of Cummins from $585.00 to $675.00 and gave the company an “outperform” rating in a report on Monday, February 9th. Finally, Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the company a “market perform” rating in a report on Friday, February 6th. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Cummins has a consensus rating of “Moderate Buy” and a consensus price target of $588.93.

Cummins Stock Performance

The company’s fifty day moving average is $568.28 and its 200 day moving average is $516.15. The company has a market capitalization of $85.08 billion, a P/E ratio of 30.01, a P/E/G ratio of 1.95 and a beta of 1.14. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last posted its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The business had revenue of $8.54 billion for the quarter, compared to analysts’ expectations of $8.09 billion. During the same period in the prior year, the company posted $5.16 EPS. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, equities analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were given a dividend of $2.00 per share. The ex-dividend date was Friday, February 20th. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. Cummins’s dividend payout ratio (DPR) is 38.99%.

Insider Activity at Cummins

In related news, VP Jennifer Mary Bush sold 4,270 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the transaction, the vice president owned 15,130 shares of the company’s stock, valued at approximately $8,849,990.90. This trade represents a 22.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Donald G. Jackson sold 1,600 shares of the stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the transaction, the vice president directly owned 7,214 shares in the company, valued at approximately $4,329,337.82. This represents a 18.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 31,195 shares of company stock worth $18,397,489 in the last 90 days. Corporate insiders own 0.41% of the company’s stock.

Institutional Investors Weigh In On Cummins

Large investors have recently modified their holdings of the stock. Nicolet Advisory Services LLC lifted its position in Cummins by 1.6% during the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company’s stock valued at $619,000 after acquiring an additional 17 shares during the period. Frank Rimerman Advisors LLC lifted its position in Cummins by 0.5% during the 4th quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company’s stock valued at $1,908,000 after acquiring an additional 18 shares during the period. Financial Consulate Inc. lifted its position in Cummins by 16.8% during the 4th quarter. Financial Consulate Inc. now owns 125 shares of the company’s stock valued at $64,000 after acquiring an additional 18 shares during the period. ICW Investment Advisors LLC lifted its position in Cummins by 2.6% during the 4th quarter. ICW Investment Advisors LLC now owns 723 shares of the company’s stock valued at $369,000 after acquiring an additional 18 shares during the period. Finally, Gilbert & Cook Inc. lifted its position in Cummins by 1.0% during the 4th quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company’s stock valued at $947,000 after acquiring an additional 19 shares during the period. Institutional investors own 83.46% of the company’s stock.

Cummins Company Profile

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.