Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Beats Estimates By $0.41 EPS

Cummins (NYSE:CMI) posted its earnings results on Thursday. The company reported $5.26 EPS for the quarter, beating the consensus estimate of $4.85 by $0.41, Briefing.com reports. The company had revenue of $8.80 billion during the quarter, compared to analyst estimates of $8.33 billion. Cummins had a return on equity of 25.73% and a net margin of 5.69%. The business’s revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the company earned $5.18 earnings per share. Cummins updated its FY 2024 guidance to EPS.

Cummins Trading Down 5.1 %

Shares of NYSE:CMI traded down $15.73 during mid-day trading on Friday, hitting $290.36. The stock had a trading volume of 1,186,131 shares, compared to its average volume of 842,567. Cummins has a 12-month low of $212.80 and a 12-month high of $322.83. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.84 and a current ratio of 1.34. The company has a market cap of $39.72 billion, a PE ratio of 21.26, a P/E/G ratio of 1.93 and a beta of 0.99. The company’s 50 day moving average is $280.08 and its 200-day moving average is $276.37.

Cummins Increases Dividend

The company also recently declared 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. 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%. This is a positive change from Cummins’s previous quarterly dividend of $1.68. Cummins’s payout ratio is currently 49.19%.

Analysts Set New Price Targets

CMI has been the subject of several recent research reports. TD Cowen upped 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. Citigroup initiated coverage on Cummins in a report on Wednesday, June 26th. They set a “buy” rating and a $320.00 target price for the company. Truist Financial lowered their target price on Cummins from $319.00 to $315.00 and set a “hold” rating for the company in a report on Tuesday, July 2nd. StockNews.com upgraded Cummins from a “hold” rating to a “buy” rating in a research report on Wednesday, May 8th. Finally, JPMorgan Chase & Co. boosted their price objective on Cummins from $275.00 to $285.00 and gave the stock an “underweight” rating in a research report on Friday. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $289.91.

Insiders Place Their Bets

In other news, VP Marvin Boakye bought 1,745 shares of the business’s stock in a transaction on Monday, May 20th. The shares were bought at an average cost of $286.04 per share, with a total value of $499,139.80. Following the purchase, the vice president now directly owns 1,745 shares in the company, valued at $499,139.80. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other news, VP Marvin Boakye bought 1,745 shares of the business’s stock in a transaction on Monday, May 20th. The shares were bought at an average cost of $286.04 per share, with a total value of $499,139.80. Following the purchase, the vice president now directly owns 1,745 shares in the company, valued at $499,139.80. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Jeffrey T. Wiltrout bought 282 shares of the business’s stock in a transaction on Friday, May 24th. The shares were purchased at an average cost of $285.11 per share, for a total transaction of $80,401.02. Following the completion of the purchase, the vice president now owns 1,262 shares in the company, valued at $359,808.82. The disclosure for this purchase can be found here. Corporate insiders own 0.56% 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.