Cummins (NYSE:CMI) Upgraded to Buy at StockNews.com

StockNews.com upgraded shares of Cummins (NYSE:CMI) from a hold rating to a buy rating in a research note published on Monday.

Several other equities research analysts have also recently issued reports on the stock. Truist Financial began coverage on shares of Cummins in a research note on Thursday, March 14th. They set a hold rating and a $303.00 price target on the stock. UBS Group upgraded shares of Cummins from a neutral rating to a buy rating and increased their price objective for the stock from $254.00 to $321.00 in a report on Friday, March 15th. Evercore ISI increased their price objective on shares of Cummins from $231.00 to $244.00 and gave the stock an in-line rating in a report on Tuesday, February 20th. Morgan Stanley assumed coverage on shares of Cummins in a report on Monday, January 8th. They set an overweight rating and a $278.00 price objective on the stock. Finally, TD Cowen increased their price objective on shares of Cummins from $260.00 to $272.00 and gave the stock an outperform rating in a report on Wednesday, February 7th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of Hold and a consensus price target of $279.70.

Cummins Price Performance

Shares of NYSE CMI opened at $290.36 on Monday. Cummins has a 52 week low of $203.18 and a 52 week high of $304.24. The stock has a market cap of $39.71 billion, a price-to-earnings ratio of 56.05, a PEG ratio of 1.96 and a beta of 1.04. The company’s 50-day moving average price is $280.93 and its 200 day moving average price is $249.14. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a return on equity of 25.68% and a net margin of 2.16%. The firm had revenue of $8.54 billion for the quarter, compared to analyst estimates of $8.10 billion. During the same period in the prior year, the business earned $4.52 earnings per share. Cummins’s revenue for the quarter was up 9.9% on a year-over-year basis. As a group, research analysts forecast that Cummins will post 18.31 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Friday, February 23rd were issued a $1.68 dividend. The ex-dividend date was Thursday, February 22nd. This represents a $6.72 annualized dividend and a yield of 2.31%. Cummins’s payout ratio is 129.73%.

Insider Activity at Cummins

In related news, VP Sharon R. Barner sold 2,100 shares of the firm’s stock in a transaction that occurred on Wednesday, February 28th. The shares were sold at an average price of $271.29, for a total value of $569,709.00. Following the transaction, the vice president now owns 16,899 shares in the company, valued at $4,584,529.71. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, VP Sharon R. Barner sold 11,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $262.16, for a total value of $2,883,760.00. Following the transaction, the vice president now owns 17,874 shares in the company, valued at $4,685,847.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Sharon R. Barner sold 2,100 shares of the stock in a transaction that occurred on Wednesday, February 28th. The shares were sold at an average price of $271.29, for a total transaction of $569,709.00. Following the completion of the sale, the vice president now directly owns 16,899 shares of the company’s stock, valued at approximately $4,584,529.71. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 51,289 shares of company stock worth $13,576,838. Company insiders own 0.56% of the company’s stock.

Institutional Trading of Cummins

Several large investors have recently bought and sold shares of CMI. OFI Invest Asset Management acquired a new stake in Cummins in the third quarter valued at approximately $25,000. First United Bank & Trust acquired a new stake in Cummins in the fourth quarter valued at approximately $25,000. Private Wealth Management Group LLC acquired a new stake in Cummins in the fourth quarter valued at approximately $26,000. Silver Oak Securities Incorporated acquired a new stake in Cummins in the third quarter valued at approximately $28,000. Finally, Global Wealth Strategies & Associates acquired a new stake in shares of Cummins during the third quarter worth approximately $29,000. Institutional investors and hedge funds own 83.46% of the company’s stock.

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.