Cummins (NYSE:CMI) Hits New 12-Month High – Should You Buy?

Shares of Cummins Inc. (NYSE:CMI) hit a new 52-week high during trading on Wednesday . The stock traded as high as $379.66 and last traded at $379.66, with a volume of 9176 shares trading hands. The stock had previously closed at $377.39.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on CMI shares. Truist Financial increased their price objective on Cummins from $349.00 to $371.00 and gave the stock a “hold” rating in a research note on Wednesday, October 9th. Evercore ISI upgraded shares of Cummins from an “in-line” rating to an “outperform” rating and increased their target price for the stock from $294.00 to $408.00 in a research report on Wednesday, November 13th. StockNews.com upgraded shares of Cummins from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, November 6th. Citigroup raised their price objective on shares of Cummins from $375.00 to $415.00 and gave the stock a “buy” rating in a report on Wednesday, November 20th. Finally, Robert W. Baird boosted their target price on Cummins from $330.00 to $372.00 and gave the stock a “neutral” rating in a report on Wednesday, November 6th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, five have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $337.67.

Cummins Stock Performance

The stock has a market capitalization of $51.41 billion, a price-to-earnings ratio of 24.94, a price-to-earnings-growth ratio of 1.82 and a beta of 0.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.32 and a quick ratio of 0.79. The stock has a 50-day moving average of $338.79 and a 200 day moving average of $305.77.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, November 5th. The company reported $5.86 EPS for the quarter, topping the consensus estimate of $4.89 by $0.97. Cummins had a net margin of 6.13% and a return on equity of 26.86%. The company had revenue of $8.46 billion during the quarter, compared to analysts’ expectations of $8.29 billion. During the same quarter in the previous year, the company earned $4.73 EPS. Cummins’s revenue was up .3% on a year-over-year basis. On average, analysts expect that Cummins Inc. will post 20.75 EPS for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 5th. Stockholders of record on Friday, November 22nd will be given a $1.82 dividend. The ex-dividend date is Friday, November 22nd. This represents a $7.28 annualized dividend and a dividend yield of 1.94%. Cummins’s dividend payout ratio is currently 48.08%.

Insider Activity at Cummins

In related news, VP Sharon R. Barner sold 2,163 shares of the stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $362.49, for a total value of $784,065.87. Following the sale, the vice president now directly owns 20,803 shares in the company, valued at $7,540,879.47. This trade represents a 9.42 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Over the last quarter, insiders sold 6,489 shares of company stock worth $2,357,531. 0.56% of the stock is owned by insiders.

Institutional Investors Weigh In On Cummins

Hedge funds have recently bought and sold shares of the company. CarsonAllaria Wealth Management Ltd. acquired a new stake in Cummins during the 2nd quarter worth $28,000. Cultivar Capital Inc. bought a new position in shares of Cummins during the 2nd quarter valued at about $28,000. Lynx Investment Advisory acquired a new position in shares of Cummins in the 2nd quarter valued at approximately $29,000. LRI Investments LLC bought a new stake in Cummins during the 1st quarter worth approximately $31,000. Finally, Prospera Private Wealth LLC acquired a new stake in Cummins during the 3rd quarter worth approximately $32,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

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.