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

Cummins Inc. (NYSE:CMI) has received a consensus recommendation of “Hold” from the thirteen research firms that are presently covering the company, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, six have assigned a hold recommendation and five have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $334.33.

A number of analysts have issued reports on the stock. Barclays lifted their price target on shares of Cummins from $259.00 to $310.00 and gave the company an “equal weight” rating in a report on Monday, August 5th. The Goldman Sachs Group boosted their target price on Cummins from $324.00 to $370.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 6th. Vertical Research lowered shares of Cummins from a “buy” rating to a “hold” rating and set a $350.00 target price for the company. in a report on Wednesday, November 6th. Robert W. Baird upped their price target on shares of Cummins from $330.00 to $372.00 and gave the company a “neutral” rating in a research note on Wednesday, November 6th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Cummins from $285.00 to $340.00 and gave the stock an “underweight” rating in a research note on Friday, October 11th.

Insider Transactions at Cummins

In other news, SVP Tony Satterthwaite sold 24,250 shares of the firm’s stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $308.24, for a total transaction of $7,474,820.00. Following the transaction, the senior vice president now owns 77,442 shares in the company, valued at approximately $23,870,722.08. This trade represents a 23.85 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Sharon R. Barner sold 2,163 shares of Cummins stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $362.49, for a total value of $784,065.87. Following the completion of the sale, the vice president now owns 20,803 shares of the company’s stock, valued at $7,540,879.47. The trade was a 9.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 28,576 shares of company stock worth $9,033,945. 0.56% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Soltis Investment Advisors LLC purchased a new position in Cummins during the third quarter valued at approximately $201,000. TD Private Client Wealth LLC increased its holdings in shares of Cummins by 5.4% in the 3rd quarter. TD Private Client Wealth LLC now owns 17,112 shares of the company’s stock valued at $5,541,000 after acquiring an additional 882 shares during the period. Hobbs Group Advisors LLC raised its position in shares of Cummins by 3,822.6% in the 3rd quarter. Hobbs Group Advisors LLC now owns 2,079 shares of the company’s stock worth $673,000 after acquiring an additional 2,026 shares in the last quarter. Fortem Financial Group LLC lifted its stake in shares of Cummins by 249.3% during the 3rd quarter. Fortem Financial Group LLC now owns 3,175 shares of the company’s stock worth $1,028,000 after purchasing an additional 2,266 shares during the last quarter. Finally, Chiron Investment Management LLC bought a new stake in Cummins during the third quarter valued at about $195,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Cummins Price Performance

Shares of Cummins stock opened at $361.73 on Wednesday. The company has a market capitalization of $49.62 billion, a price-to-earnings ratio of 23.89, a PEG ratio of 1.77 and a beta of 0.97. The company has a quick ratio of 0.79, a current ratio of 1.32 and a debt-to-equity ratio of 0.43. The stock’s 50-day simple moving average is $331.59 and its 200-day simple moving average is $302.93. Cummins has a 52 week low of $220.02 and a 52 week high of $370.21.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, November 5th. The company reported $5.86 EPS for the quarter, topping analysts’ consensus estimates of $4.89 by $0.97. Cummins had a return on equity of 26.86% and a net margin of 6.13%. The company had revenue of $8.46 billion for the quarter, compared to analysts’ expectations of $8.29 billion. During the same period in the previous year, the firm earned $4.73 EPS. The firm’s revenue was up .3% compared to the same quarter last year. As a group, analysts expect that Cummins will post 20.57 earnings per share for the current fiscal year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 5th. Shareholders of record on Friday, November 22nd will be paid a $1.82 dividend. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $7.28 dividend on an annualized basis and a yield of 2.01%. Cummins’s payout ratio is 48.08%.

Cummins Company Profile

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.