Truist Financial Forecasts Strong Price Appreciation for Cummins (NYSE:CMI) Stock

Cummins (NYSE:CMI) had its target price upped by analysts at Truist Financial from $434.00 to $522.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a “hold” rating on the stock. Truist Financial’s target price points to a potential upside of 10.90% from the stock’s previous close.

A number of other research analysts have also weighed in on the stock. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $475.00 price target on shares of Cummins in a research note on Friday. Melius Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $500.00 target price for the company in a report on Wednesday, September 3rd. Evercore ISI restated an “outperform” rating on shares of Cummins in a report on Tuesday, August 19th. Wells Fargo & Company upgraded Cummins to an “overweight” rating in a research note on Monday, August 11th. Finally, JPMorgan Chase & Co. raised their price target on shares of Cummins from $400.00 to $460.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Cummins currently has a consensus rating of “Moderate Buy” and a consensus target price of $425.71.

Cummins Trading Up 1.7%

CMI stock traded up $7.91 during midday trading on Friday, reaching $470.71. The company’s stock had a trading volume of 276,509 shares, compared to its average volume of 875,052. The business’s 50-day simple moving average is $419.28 and its 200-day simple moving average is $367.16. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins has a 52 week low of $260.02 and a 52 week high of $482.53. The stock has a market cap of $64.86 billion, a PE ratio of 22.07, a price-to-earnings-growth ratio of 2.05 and a beta of 1.07.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Thursday, November 6th. The company reported $5.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.83 by $0.76. The business had revenue of $8.32 billion for the quarter, compared to analyst estimates of $7.97 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm’s revenue was down 1.6% on a year-over-year basis. During the same period last year, the company earned $5.86 EPS. As a group, sell-side analysts expect that Cummins will post 22.54 EPS for the current year.

Insider Activity at Cummins

In other news, Director Karen H. Quintos sold 1,307 shares of the business’s stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total transaction of $529,766.31. Following the completion of the sale, the director owned 5,227 shares in the company, valued at $2,118,659.91. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the sale, the vice president directly owned 20,738 shares of the company’s stock, valued at approximately $8,354,925.44. The trade was a 19.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 37,949 shares of company stock valued at $15,674,705. 0.41% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cummins

A number of hedge funds have recently bought and sold shares of the business. Flagship Wealth Advisors LLC acquired a new position in shares of Cummins in the 3rd quarter valued at approximately $28,000. Accredited Wealth Management LLC bought a new stake in shares of Cummins during the 1st quarter worth $31,000. Osterweis Capital Management Inc. bought a new position in Cummins in the second quarter valued at about $31,000. Guerra Advisors Inc acquired a new stake in shares of Cummins in the 3rd quarter valued at approximately $36,000. Finally, Salomon & Ludwin LLC grew its holdings in shares of Cummins by 1,333.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 86 shares of the company’s stock valued at $37,000 after purchasing an additional 80 shares during the last quarter. 83.46% of the stock is owned by institutional investors.

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.