Brokerages Set Cummins Inc. (NYSE:CMI) Price Target at $738.00

Cummins Inc. (NYSE:CMI) has earned an average rating of “Moderate Buy” from the fifteen research firms that are currently covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a hold recommendation and eleven have given a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $739.4286.

CMI has been the topic of a number of analyst reports. Argus increased their price objective on Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Morgan Stanley upped their target price on shares of Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Weiss Ratings cut shares of Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, May 6th. Wells Fargo & Company lifted their price target on shares of Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Finally, Truist Financial upped their price objective on shares of Cummins from $815.00 to $901.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd.

Insider Buying and Selling at Cummins

In other news, VP Nathan R. Stoner sold 607 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $694.06, for a total transaction of $421,294.42. Following the transaction, the vice president directly owned 9,447 shares in the company, valued at $6,556,784.82. This represents a 6.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Donald G. Jackson sold 730 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the sale, the vice president directly owned 8,316 shares in the company, valued at $5,912,010.72. This represents a 8.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cummins

A number of large investors have recently bought and sold shares of CMI. Vanguard Group Inc. raised its position in shares of Cummins by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company’s stock worth $9,058,841,000 after buying an additional 98,544 shares during the period. State Street Corp increased its position in Cummins by 0.8% during the 4th quarter. State Street Corp now owns 6,509,852 shares of the company’s stock worth $3,322,954,000 after purchasing an additional 49,628 shares in the last quarter. Geode Capital Management LLC raised its holdings in Cummins by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company’s stock valued at $1,822,534,000 after buying an additional 35,286 shares during the period. Fisher Asset Management LLC raised its holdings in Cummins by 1.3% in the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company’s stock valued at $1,741,004,000 after buying an additional 43,722 shares during the period. Finally, Northwestern Mutual Wealth Management Co. raised its stake in shares of Cummins by 10,317.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock valued at $1,254,929,000 after acquiring an additional 2,434,876 shares during the period. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Cummins Trading Down 1.4%

Shares of Cummins stock opened at $666.12 on Monday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. Cummins has a 1 year low of $340.39 and a 1 year high of $737.76. The company has a market capitalization of $91.92 billion, a P/E ratio of 34.57, a P/E/G ratio of 1.65 and a beta of 1.22. The business has a 50 day moving average price of $678.35 and a 200 day moving average price of $613.12.

Cummins (NYSE:CMI) last announced its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating analysts’ consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm had revenue of $8.40 billion for the quarter, compared to analysts’ expectations of $8.37 billion. During the same quarter in the prior year, the firm earned $5.96 EPS. Cummins’s quarterly revenue was up 2.7% on a year-over-year basis. Sell-side analysts anticipate that Cummins will post 29.35 EPS for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.3%. This is a boost from Cummins’s previous quarterly dividend of $2.00. Cummins’s dividend payout ratio is currently 41.52%.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins was upgraded to Zacks Rank #2 (Buy), signaling improving earnings expectations and raising the odds that the stock could move higher if the company continues to deliver strong results. Article Title
• Positive Sentiment: Investors are also focused on Cummins’ 10% dividend hike, which supports the stock’s appeal as a cash-return story and may help sentiment around the shares. Article Title
• Positive Sentiment: Analysts say AI data center power demand could be an additional growth driver for Cummins, while raised 2030 targets reinforce the long-term earnings outlook. Article Title
• Neutral Sentiment: Several reports highlighted Cummins’ history of earnings beats and the possibility of another upside surprise in the next quarterly report, which could be a supportive near-term catalyst if management delivers again. Article Title
• Neutral Sentiment: One note said Cummins was downgraded from strong-buy to hold by Zacks Research, which is a mild headwind but does not change the broader positive tone around the name. Article Title
• Positive Sentiment: Cummins’ recently announced quarterly dividend increase and commentary that the stock may be undervalued are also helping support investor confidence in the shares. Article Title

Cummins Company Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.