Cummins (NYSE:CMI) Reaches New 12-Month High – Still a Buy?

by · The Cerbat Gem

Cummins Inc. (NYSE:CMI – Get Free Report) hit a new 52-week high on Monday . The company traded as high as $500.26 and last traded at $498.9550, with a volume of 125983 shares changing hands. The stock had previously closed at $497.98.

Analyst Upgrades and Downgrades

CMI has been the topic of a number of analyst reports. JPMorgan Chase & Co. boosted their price target on Cummins from $400.00 to $460.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 14th. Melius Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Truist Financial set a $628.00 target price on shares of Cummins and gave the stock a “buy” rating in a report on Monday, November 24th. Citigroup raised their price target on shares of Cummins from $500.00 to $530.00 and gave the company a “buy” rating in a research report on Friday, November 7th. Finally, Argus upped their price objective on Cummins from $459.00 to $573.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. Twelve investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $476.75.

Get Our Latest Stock Report on Cummins

Cummins Stock Performance

The company has a market cap of $70.09 billion, a P/E ratio of 26.35, a P/E/G ratio of 1.95 and a beta of 1.11. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52. The business has a fifty day simple moving average of $445.26 and a two-hundred day simple moving average of $390.39.

Cummins (NYSE:CMI – Get Free Report) last announced its earnings results on Thursday, November 6th. The company reported $5.59 EPS for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. Cummins had a return on equity of 26.02% and a net margin of 7.95%.The company had revenue of $8.32 billion for the quarter, compared to analysts’ expectations of $7.97 billion. During the same period last year, the firm earned $5.86 EPS. Cummins’s revenue for the quarter was down 1.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 4th. Shareholders of record on Friday, November 21st will be paid a dividend of $2.00 per share. The ex-dividend date is Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a yield of 1.6%. Cummins’s dividend payout ratio (DPR) is presently 41.52%.

Insiders Place Their Bets

In other Cummins news, insider Brett Michael Merritt sold 1,450 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the sale, the insider directly owned 9,271 shares of the company’s stock, valued at $4,536,485.72. This trade represents a 13.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark Andrew Smith sold 13,110 shares of the business’s stock in a transaction dated Thursday, November 6th. The shares were sold at an average price of $470.66, for a total value of $6,170,352.60. Following the completion of the transaction, the chief financial officer owned 31,582 shares in the company, valued at $14,864,384.12. The trade was a 29.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 36,410 shares of company stock worth $16,424,574 over the last three months. 0.41% of the stock is currently owned by company insiders.

Institutional Trading of Cummins

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in Cummins in the 2nd quarter worth about $505,941,000. Boston Partners purchased a new position in Cummins during the 3rd quarter valued at $473,471,000. Raymond James Financial Inc. grew its position in Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company’s stock valued at $424,414,000 after acquiring an additional 817,384 shares during the last quarter. London Co. of Virginia bought a new position in Cummins in the 3rd quarter valued at $231,732,000. Finally, American Century Companies Inc. increased its stake in Cummins by 138.8% in the second quarter. American Century Companies Inc. now owns 909,653 shares of the company’s stock worth $297,912,000 after purchasing an additional 528,689 shares during the period. Institutional investors own 83.46% of the company’s stock.

About Cummins

(Get Free Report)

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.

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