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

Cummins Inc. (NYSE:CMI)’s stock price hit a new 52-week high during trading on Friday . The company traded as high as $622.88 and last traded at $622.3480, with a volume of 93056 shares traded. The stock had previously closed at $608.89.

Wall Street Analyst Weigh In

A number of brokerages have commented on CMI. Raymond James Financial increased their price objective on shares of Cummins from $585.00 to $675.00 and gave the stock an “outperform” rating in a report on Monday, February 9th. Wolfe Research lowered shares of Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price objective on the stock. in a report on Monday, January 26th. Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the stock a “market perform” rating in a report on Friday, February 6th. Morgan Stanley reissued an “overweight” rating and set a $675.00 price objective on shares of Cummins in a report on Friday, February 6th. Finally, Citigroup increased their price objective on shares of Cummins from $630.00 to $710.00 and gave the stock a “buy” rating in a report on Monday, April 13th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Cummins currently has an average rating of “Moderate Buy” and an average target price of $598.47.

Cummins Trading Up 3.0%

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. The company has a market capitalization of $86.61 billion, a price-to-earnings ratio of 30.55, a P/E/G ratio of 1.93 and a beta of 1.14. The business’s 50-day simple moving average is $571.31 and its 200-day simple moving average is $522.99.

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

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders 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 dividend on an annualized basis and a yield of 1.3%. Cummins’s dividend payout ratio is presently 38.99%.

Insider Activity at Cummins

In other Cummins news, Director William I. Miller sold 18,107 shares of the company’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the transaction, the director directly owned 34,243 shares in the company, valued at approximately $20,446,495.30. This represents a 34.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Jennifer Mary Bush sold 4,270 shares of the company’s stock in a transaction dated 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 in the company, valued at approximately $8,849,990.90. The trade was a 22.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 31,195 shares of company stock worth $18,397,489. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. raised its position in shares of Cummins by 10,317.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock valued at $1,254,929,000 after acquiring an additional 2,434,876 shares during the period. Norges Bank acquired a new stake in shares of Cummins in the 4th quarter valued at approximately $863,441,000. Boston Partners acquired a new stake in shares of Cummins in the 3rd quarter valued at approximately $473,471,000. London Co. of Virginia acquired a new stake in shares of Cummins in the 3rd quarter valued at approximately $231,732,000. Finally, SG Americas Securities LLC raised its position in shares of Cummins by 257.9% in the 1st quarter. SG Americas Securities LLC now owns 736,670 shares of the company’s stock valued at $396,343,000 after acquiring an additional 530,812 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

About Cummins

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.