Cummins Inc. (NYSE:CMI) Receives $357.25 Consensus PT from Brokerages

Cummins Inc. (NYSE:CMI) has been given an average recommendation of “Hold” by the thirteen research firms that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, seven have given a hold recommendation and five have given a buy recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $357.25.

Several brokerages have recently issued reports on CMI. JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $308.00 to $320.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 6th. UBS Group cut shares of Cummins from a “buy” rating to a “sell” rating and lowered their price objective for the stock from $400.00 to $240.00 in a research note on Monday, April 7th. Evercore ISI lowered their price objective on shares of Cummins from $451.00 to $419.00 and set an “outperform” rating on the stock in a research note on Monday, May 19th. Citigroup lifted their price objective on shares of Cummins from $320.00 to $350.00 and gave the stock a “buy” rating in a research note on Monday, May 12th. Finally, Morgan Stanley lifted their price objective on shares of Cummins from $340.00 to $350.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 6th.

Cummins Stock Up 0.4%

CMI stock opened at $327.08 on Friday. Cummins has a 52 week low of $260.02 and a 52 week high of $387.90. The company has a market capitalization of $45.06 billion, a price-to-earnings ratio of 11.61, a price-to-earnings-growth ratio of 2.19 and a beta of 1.04. The firm’s 50-day moving average is $305.05 and its two-hundred day moving average is $337.76. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42.

Cummins (NYSE:CMI) last released its quarterly earnings results on Monday, May 5th. The company reported $5.96 EPS for the quarter, topping analysts’ consensus estimates of $4.92 by $1.04. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The company had revenue of $8.17 billion for the quarter, compared to the consensus estimate of $8.22 billion. During the same period in the previous year, the firm earned $5.08 EPS. Cummins’s revenue was down 2.7% on a year-over-year basis. On average, analysts forecast that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Friday, May 23rd were given a $1.82 dividend. This represents a $7.28 annualized dividend and a dividend yield of 2.23%. The ex-dividend date of this dividend was Friday, May 23rd. Cummins’s dividend payout ratio (DPR) is currently 36.22%.

Insider Transactions at Cummins

In related news, Director John H. Stone acquired 1,000 shares of the stock in a transaction that occurred on Friday, May 16th. The shares were purchased at an average cost of $332.08 per share, with a total value of $332,080.00. Following the completion of the transaction, the director now owns 2,441 shares of the company’s stock, valued at approximately $810,607.28. This trade represents a 69.40% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. 0.41% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. 1248 Management LLC purchased a new position in Cummins during the first quarter valued at approximately $102,000. eCIO Inc. purchased a new position in Cummins during the first quarter valued at approximately $82,000. Cim LLC grew its position in Cummins by 12.9% during the first quarter. Cim LLC now owns 4,962 shares of the company’s stock valued at $1,555,000 after purchasing an additional 567 shares in the last quarter. Modern Wealth Management LLC grew its position in Cummins by 308.5% during the first quarter. Modern Wealth Management LLC now owns 2,267 shares of the company’s stock valued at $711,000 after purchasing an additional 1,712 shares in the last quarter. Finally, Strs Ohio purchased a new position in Cummins during the first quarter valued at approximately $22,350,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

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.