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

Shares of Cummins Inc. (NYSE:CMI) have earned a consensus recommendation of “Moderate Buy” from the seventeen brokerages that are presently covering the firm, Marketbeat Ratings reports. Six research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $588.9333.

CMI has been the subject of a number of recent analyst reports. Wells Fargo & Company upped their price target on Cummins from $599.00 to $630.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Argus set a $696.00 target price on Cummins in a research note on Tuesday, February 10th. Robert W. Baird set a $580.00 target price on Cummins in a report on Friday, February 6th. Barclays raised their price target on Cummins from $546.00 to $610.00 and gave the stock an “overweight” rating in a research note on Friday, January 23rd. Finally, UBS Group set a $565.00 price objective on shares of Cummins and gave the company a “neutral” rating in a research report on Friday, February 6th.

Cummins Price Performance

CMI stock opened at $549.46 on Tuesday. The firm’s 50-day moving average price is $571.48 and its two-hundred day moving average price is $492.43. Cummins has a 12-month low of $260.02 and a 12-month high of $617.98. The stock has a market capitalization of $75.91 billion, a price-to-earnings ratio of 26.78, a PEG ratio of 1.71 and a beta of 1.12. 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 for the quarter, topping analysts’ consensus estimates of $5.17 by $0.64. The company had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. Cummins’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the prior year, the business posted $5.16 earnings per share. As a group, equities analysts predict that Cummins will post 22.54 earnings per share for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were paid a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, February 20th. Cummins’s dividend payout ratio is presently 38.99%.

Insider Buying and Selling at Cummins

In other Cummins news, VP Earl Newsome sold 1,300 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $583.67, for a total transaction of $758,771.00. Following the transaction, the vice president owned 3,389 shares in the company, valued at approximately $1,978,057.63. This represents a 27.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Donald G. Jackson sold 1,600 shares of the stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total value of $960,208.00. Following the completion of the transaction, the vice president directly owned 7,214 shares of the company’s stock, valued at $4,329,337.82. This represents a 18.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 31,195 shares of company stock worth $18,397,489. Insiders own 0.41% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Union Savings Bank bought a new position in shares of Cummins during the fourth quarter valued at approximately $314,000. Mengis Capital Management Inc. raised its stake in Cummins by 0.3% during the fourth quarter. Mengis Capital Management Inc. now owns 6,463 shares of the company’s stock valued at $3,299,000 after buying an additional 20 shares during the last quarter. Bayban bought a new stake in Cummins in the fourth quarter worth $55,000. Pure Financial Advisors LLC grew its stake in shares of Cummins by 17.9% in the fourth quarter. Pure Financial Advisors LLC now owns 994 shares of the company’s stock worth $508,000 after acquiring an additional 151 shares during the last quarter. Finally, OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Cummins in the 4th quarter worth about $1,531,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

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.