Cummins (NYSE:CMI) Hits New 52-Week High Following Better-Than-Expected Earnings

Cummins Inc. (NYSE:CMI) shares reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $322.69 and last traded at $316.90, with a volume of 193289 shares. The stock had previously closed at $291.80.

The company reported $5.26 EPS for the quarter, beating analysts’ consensus estimates of $4.85 by $0.41. Cummins had a return on equity of 25.73% and a net margin of 5.69%. The firm had revenue of $8.80 billion for the quarter, compared to the consensus estimate of $8.33 billion. During the same quarter in the previous year, the company posted $5.18 earnings per share. The business’s quarterly revenue was up 2.3% compared to the same quarter last year.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 5th. Stockholders of record on Friday, August 23rd will be issued a dividend of $1.82 per share. This is a positive change from Cummins’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, August 23rd. This represents a $7.28 dividend on an annualized basis and a dividend yield of 2.51%. Cummins’s dividend payout ratio is currently 49.19%.

Analysts Set New Price Targets

A number of brokerages have recently commented on CMI. JPMorgan Chase & Co. increased their price objective on Cummins from $275.00 to $285.00 and gave the company an “underweight” rating in a report on Friday. Citigroup assumed coverage on Cummins in a report on Wednesday, June 26th. They set a “buy” rating and a $320.00 price objective on the stock. The Goldman Sachs Group raised their target price on Cummins from $270.00 to $306.00 and gave the company a “neutral” rating in a report on Tuesday, April 16th. Robert W. Baird raised their target price on Cummins from $295.00 to $315.00 and gave the company a “neutral” rating in a report on Friday. Finally, TD Cowen raised their target price on Cummins from $272.00 to $292.00 and gave the company a “buy” rating in a report on Friday, May 10th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, Cummins presently has a consensus rating of “Hold” and a consensus price target of $289.91.

Insider Buying and Selling

In related news, VP Sharon R. Barner sold 3,880 shares of Cummins stock in a transaction on Tuesday, May 7th. The stock was sold at an average price of $286.86, for a total transaction of $1,113,016.80. Following the completion of the sale, the vice president now directly owns 20,873 shares of the company’s stock, valued at $5,987,628.78. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other Cummins news, VP Sharon R. Barner sold 3,880 shares of Cummins stock in a transaction dated Tuesday, May 7th. The stock was sold at an average price of $286.86, for a total transaction of $1,113,016.80. Following the transaction, the vice president now directly owns 20,873 shares in the company, valued at $5,987,628.78. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Marvin Boakye bought 1,745 shares of Cummins stock in a transaction on Monday, May 20th. The shares were acquired at an average price of $286.04 per share, for a total transaction of $499,139.80. Following the completion of the acquisition, the vice president now owns 1,745 shares of the company’s stock, valued at approximately $499,139.80. The disclosure for this purchase can be found here. 0.56% of the stock is owned by corporate insiders.

Institutional Trading of Cummins

Institutional investors have recently modified their holdings of the company. First United Bank & Trust bought a new stake in shares of Cummins in the fourth quarter valued at about $25,000. Private Wealth Management Group LLC bought a new stake in Cummins during the fourth quarter worth about $26,000. CarsonAllaria Wealth Management Ltd. bought a new stake in Cummins during the second quarter worth about $28,000. Cultivar Capital Inc. bought a new stake in Cummins during the second quarter worth about $28,000. Finally, Lynx Investment Advisory bought a new stake in Cummins during the second quarter worth about $29,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Stock Down 5.1 %

The firm has a market cap of $39.72 billion, a P/E ratio of 21.26, a price-to-earnings-growth ratio of 1.93 and a beta of 0.99. The company has a quick ratio of 0.84, a current ratio of 1.34 and a debt-to-equity ratio of 0.51. The firm has a fifty day moving average of $280.08 and a 200-day moving average of $276.37.

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.