Cummins Inc. (NYSE:CMI) Receives $389.50 Average Target Price from Brokerages

Cummins Inc. (NYSE:CMI) has been given an average recommendation of “Hold” by the thirteen research firms that are covering the company, MarketBeat.com reports. Eight equities research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $389.50.

CMI has been the subject of several research reports. Robert W. Baird raised their price objective on shares of Cummins from $395.00 to $407.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 5th. StockNews.com lowered Cummins from a “buy” rating to a “hold” rating in a research note on Tuesday. Evercore ISI boosted their target price on shares of Cummins from $408.00 to $451.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 19th. UBS Group cut their target price on Cummins from $432.00 to $400.00 and set a “buy” rating on the stock in a report on Tuesday, March 18th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Cummins from $420.00 to $375.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 18th.

Institutional Trading of Cummins

A number of hedge funds and other institutional investors have recently made changes to their positions in CMI. Mariner Investment Group LLC bought a new position in Cummins in the fourth quarter valued at $1,046,000. Franklin Resources Inc. boosted its position in shares of Cummins by 74.2% in the 3rd quarter. Franklin Resources Inc. now owns 233,544 shares of the company’s stock worth $79,017,000 after purchasing an additional 99,464 shares in the last quarter. Bank of Montreal Can boosted its stake in Cummins by 21.2% in the 3rd quarter. Bank of Montreal Can now owns 391,845 shares of the company’s stock worth $127,898,000 after purchasing an additional 68,627 shares in the last quarter. Hancock Whitney Corp raised its holdings in Cummins by 545.1% in the 3rd quarter. Hancock Whitney Corp now owns 38,630 shares of the company’s stock worth $12,508,000 after acquiring an additional 32,642 shares during the last quarter. Finally, Axxcess Wealth Management LLC raised its position in Cummins by 133.4% in the 4th quarter. Axxcess Wealth Management LLC now owns 5,798 shares of the company’s stock worth $2,021,000 after buying an additional 3,314 shares during the last quarter. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Down 1.2 %

Cummins stock opened at $323.93 on Tuesday. Cummins has a 1-year low of $261.51 and a 1-year high of $387.90. The company has a market cap of $44.53 billion, a P/E ratio of 11.50, a price-to-earnings-growth ratio of 2.19 and a beta of 1.01. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42. The company has a fifty day simple moving average of $353.22 and a 200 day simple moving average of $347.93.

Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, February 4th. The company reported $5.16 earnings per share for the quarter, topping the consensus estimate of $4.70 by $0.46. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The company had revenue of $8.45 billion for the quarter, compared to analyst estimates of $8.06 billion. During the same period in the previous year, the business earned $4.14 EPS. Cummins’s revenue for the quarter was down 1.1% compared to the same quarter last year. Research analysts anticipate 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, March 6th. Shareholders of record on Friday, February 21st were paid a $1.82 dividend. The ex-dividend date of this dividend was Friday, February 21st. This represents a $7.28 annualized dividend and a dividend yield of 2.25%. Cummins’s payout ratio is presently 25.84%.

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.