JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Cummins (NYSE:CMI) Stock

Cummins (NYSE:CMI) had its target price lifted by equities research analysts at JPMorgan Chase & Co. from $600.00 to $725.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 6.34% from the stock’s previous close.

Several other research analysts have also weighed in on the stock. Truist Financial set a $815.00 price objective on shares of Cummins in a research note on Wednesday. Citigroup upped their price objective on shares of Cummins from $710.00 to $770.00 and gave the company a “buy” rating in a research note on Wednesday. Zacks Research lowered shares of Cummins from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 28th. Wells Fargo & Company upped their price objective on shares of Cummins from $693.00 to $794.00 and gave the company an “overweight” rating in a research note on Wednesday. Finally, Barclays upped their price objective on shares of Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a research note on Wednesday. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Cummins has an average rating of “Moderate Buy” and an average price target of $649.47.

Cummins Stock Down 4.7%

Shares of NYSE:CMI opened at $681.79 on Wednesday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.16 and a current ratio of 1.71. The company has a market cap of $94.20 billion, a PE ratio of 35.38, a price-to-earnings-growth ratio of 2.26 and a beta of 1.27. Cummins has a 52 week low of $300.93 and a 52 week high of $718.08. The firm has a 50 day simple moving average of $586.92 and a 200 day simple moving average of $543.54.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating the consensus estimate of $5.63 by $0.52. The business had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm’s quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.96 EPS. As a group, research analysts expect that Cummins will post 26.06 earnings per share for the current year.

Insider Buying and Selling

In other Cummins news, VP Amy Rochelle Davis sold 4,054 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total value of $2,275,672.36. Following the completion of the sale, the vice president directly owned 15,807 shares of the company’s stock, valued at $8,873,101.38. The trade was a 20.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Donald G. Jackson sold 1,600 shares of the business’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total transaction of $960,208.00. Following the completion of the sale, the vice president directly owned 7,214 shares of the company’s stock, valued at $4,329,337.82. This represents a 18.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 31,195 shares of company stock valued at $18,397,489. 0.30% of the stock is owned by company insiders.

Institutional Trading of Cummins

Several large investors have recently added to or reduced their stakes in CMI. Brighton Jones LLC grew its position in Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock worth $736,000 after acquiring an additional 83 shares in the last quarter. Intech Investment Management LLC grew its position in Cummins by 40.8% in the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock worth $1,240,000 after acquiring an additional 1,146 shares in the last quarter. Treasurer of the State of North Carolina grew its position in Cummins by 2.8% in the second quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock worth $21,055,000 after acquiring an additional 1,759 shares in the last quarter. ICW Investment Advisors LLC bought a new stake in Cummins in the second quarter worth approximately $225,000. Finally, Osterweis Capital Management Inc. bought a new stake in Cummins in the second quarter worth approximately $31,000. 83.46% of the stock is owned by institutional investors.

Key Headlines Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins reported a Q1 beat and management reiterated a stronger outlook on the earnings call; that beat and guidance lift are supporting the rally into the recent highs. Read More.
• Positive Sentiment: Wells Fargo raised its price target to $794 and put an “overweight” rating on CMI, signaling significant upside expectations from a major shop. Read More.
• Positive Sentiment: JPMorgan raised its target to $725 (while keeping a neutral stance), and other analyst updates have generally moved targets higher — a near-term positive technical and sentiment driver. Read More.
• Positive Sentiment: Market momentum: CMI has hit a 52-week high and several market-commentary pieces highlight it as a momentum/dividend-growth idea, which can attract trend-following flows. Read More.
• Neutral Sentiment: Analysts are reworking models and assumptions — some target moves reflect longer-term shifts (EV/zero-emission opportunity) rather than immediate margin expansion; this creates mixed near-term guidance changes. Read More.
• Positive Sentiment: Cummins is publicly refocusing more of its portfolio toward zero-emission growth, which supports a higher long-term growth multiple though it may require near-term investment. Read More.
• Negative Sentiment: Offsetting the positives, management flagged weakness in the trucking end market and some mixed Q1 trends that could pressure near-term aftermarket and OEM volumes. Read More.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.