Cummins Inc. (NYSE:CMI) Stock Has Average Target Price of $736.59

Shares of Cummins Inc. (NYSE:CMI) have received an average rating of “Moderate Buy” from the eighteen research firms that are presently covering the stock, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $731.06.

CMI has been the subject of a number of recent analyst reports. Sanford C. Bernstein reissued a “market perform” rating and set a $700.00 price objective on shares of Cummins in a research report on Wednesday, August 5th. Bank of America lowered their target price on shares of Cummins from $731.00 to $600.00 in a research note on Thursday, September 24th. DA Davidson boosted their price target on shares of Cummins from $605.00 to $750.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. lowered their price objective on shares of Cummins from $690.00 to $600.00 and set a “neutral” rating for the company in a research report on Wednesday, September 23rd. Finally, Morgan Stanley lifted their target price on shares of Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a report on Friday, July 17th.

Insider Activity

In other Cummins news, VP Earl Newsome sold 698 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, the vice president owned 4,479 shares of the company’s stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 0.30% of the company’s stock.

Institutional Trading of Cummins

Large investors have recently made changes to their positions in the company. Polaris Financial Partners bought a new stake in Cummins during the 3rd quarter valued at approximately $107,000. GoalVest Advisory LLC lifted its holdings in shares of Cummins by 26.5% during the third quarter. GoalVest Advisory LLC now owns 148 shares of the company’s stock worth $76,000 after buying an additional 31 shares during the last quarter. Stonebridge Financial Group LLC boosted its position in shares of Cummins by 2.3% in the third quarter. Stonebridge Financial Group LLC now owns 12,300 shares of the company’s stock valued at $6,354,000 after acquiring an additional 280 shares during the period. QRG Capital Management Inc. grew its stake in shares of Cummins by 112.0% in the second quarter. QRG Capital Management Inc. now owns 120,855 shares of the company’s stock worth $86,195,000 after acquiring an additional 63,839 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. grew its stake in shares of Cummins by 376.1% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 16,857 shares of the company’s stock worth $12,023,000 after acquiring an additional 13,316 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Price Performance

NYSE:CMI opened at $527.63 on Friday. Cummins has a 1-year low of $400.72 and a 1-year high of $737.76. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The company has a 50 day moving average price of $578.71 and a 200-day moving average price of $620.89. The firm has a market cap of $72.63 billion, a price-to-earnings ratio of 26.96, a price-to-earnings-growth ratio of 1.36 and a beta of 1.24.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to analysts’ expectations of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the business posted $6.43 earnings per share. Equities research analysts forecast that Cummins will post 30.13 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were paid a $2.20 dividend. The ex-dividend date of this dividend was Friday, August 21st. This is a boost from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.7%. Cummins’s payout ratio is presently 44.97%.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.