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

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

CMI has been the subject of several other reports. UBS Group raised Cummins from a neutral rating to a buy rating and increased their price objective for the company from $254.00 to $321.00 in a report on Friday, March 15th. Morgan Stanley started coverage on Cummins in a report on Monday, January 8th. They set an overweight rating and a $278.00 price objective for the company. Truist Financial began coverage on Cummins in a report on Thursday, March 14th. They set a hold rating and a $303.00 price objective for the company. Citigroup raised their price target on Cummins from $265.00 to $285.00 and gave the stock a buy rating in a report on Monday, February 12th. Finally, TD Cowen raised their price target on Cummins from $260.00 to $272.00 and gave the stock an outperform rating in a report on Wednesday, February 7th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of Hold and a consensus target price of $279.70.

Cummins Stock Performance

Shares of CMI opened at $291.40 on Monday. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $39.85 billion, a price-to-earnings ratio of 56.25, a PEG ratio of 1.99 and a beta of 1.04. The stock has a 50 day moving average of $282.84 and a 200 day moving average of $250.18. Cummins has a 12 month low of $203.18 and a 12 month high of $304.24.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Tuesday, February 6th. The company reported $4.14 earnings per share for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a net margin of 2.16% and a return on equity of 25.68%. The firm had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.10 billion. During the same period last year, the company posted $4.52 earnings per share. Cummins’s revenue for the quarter was up 9.9% on a year-over-year basis. As a group, sell-side analysts forecast that Cummins will post 18.34 earnings per share for the current year.

Cummins Dividend Announcement

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

Insider Activity at Cummins

In related news, SVP Tony Satterthwaite sold 37,450 shares of Cummins stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the completion of the sale, the senior vice president now owns 73,741 shares of the company’s stock, valued at $19,545,052.05. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In related news, SVP Tony Satterthwaite sold 37,450 shares of Cummins stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the completion of the sale, the senior vice president now owns 73,741 shares of the company’s stock, valued at $19,545,052.05. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Sharon R. Barner sold 11,000 shares of Cummins stock in a transaction 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 sale, the vice president now directly owns 17,874 shares of the company’s stock, valued at approximately $4,685,847.84. The disclosure for this sale can be found here. Over the last quarter, insiders sold 51,289 shares of company stock valued at $13,576,838. Company insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Cummins

Large investors have recently added to or reduced their stakes in the company. OFI Invest Asset Management purchased a new stake in Cummins during the third quarter valued at about $25,000. First United Bank & Trust purchased a new stake in Cummins during the fourth quarter valued at about $25,000. Private Wealth Management Group LLC purchased a new stake in Cummins during the fourth quarter valued at about $26,000. Silver Oak Securities Incorporated purchased a new stake in Cummins during the third quarter valued at about $28,000. Finally, Global Wealth Strategies & Associates purchased a new stake in Cummins during the third quarter valued at about $29,000. Hedge funds and other institutional investors 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.