Cummins Inc. (NYSE:CMI) Receives Average Recommendation of “Hold” from Brokerages

Shares of Cummins Inc. (NYSE:CMI) have been given an average rating of “Hold” by the eleven brokerages that are currently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and five have issued a buy recommendation on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $282.55.

A number of research firms have commented on CMI. TheStreet cut Cummins from an “a-” rating to a “c+” rating in a research note on Tuesday, February 6th. Robert W. Baird lowered their target price on Cummins from $298.00 to $295.00 and set a “neutral” rating for the company in a report on Friday. Morgan Stanley began coverage on shares of Cummins in a research note on Monday, January 8th. They set an “overweight” rating and a $278.00 price target on the stock. JPMorgan Chase & Co. raised their price objective on shares of Cummins from $245.00 to $275.00 and gave the company an “underweight” rating in a research note on Monday, March 25th. Finally, UBS Group raised shares of Cummins from a “neutral” rating to a “buy” rating and upped their target price for the stock from $254.00 to $321.00 in a research note on Friday, March 15th.

Cummins Stock Performance

NYSE:CMI opened at $280.74 on Friday. The company’s 50-day moving average is $285.06 and its two-hundred day moving average is $252.19. Cummins has a 1-year low of $203.18 and a 1-year high of $304.24. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.18 and a quick ratio of 0.74. The firm has a market capitalization of $38.39 billion, a price-to-earnings ratio of 54.20, a PEG ratio of 1.93 and a beta of 1.04.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.27). Cummins had a return on equity of 25.68% and a net margin of 2.16%. The business had revenue of $8.54 billion for the quarter, compared to analyst estimates of $8.10 billion. During the same period in the previous year, the business posted $4.52 earnings per share. The firm’s revenue for the quarter was up 9.9% compared to the same quarter last year. Analysts forecast that Cummins will post 18.34 EPS for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.39%. The ex-dividend date was Thursday, February 22nd. Cummins’s dividend payout ratio is presently 129.73%.

Insiders Place Their Bets

In other Cummins news, Director Daniel William Fisher bought 562 shares of the business’s stock in a transaction dated Tuesday, February 27th. The shares were acquired at an average price of $266.57 per share, with a total value of $149,812.34. Following the transaction, the director now owns 1,068 shares of the company’s stock, valued at $284,696.76. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. In related news, Director Daniel William Fisher bought 562 shares of the company’s stock in a transaction that occurred on Tuesday, February 27th. The shares were purchased at an average cost of $266.57 per share, with a total value of $149,812.34. Following the transaction, the director now directly owns 1,068 shares of the company’s stock, valued at approximately $284,696.76. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Sharon R. Barner sold 2,100 shares of Cummins stock in a transaction on Wednesday, February 28th. The stock was sold at an average price of $271.29, for a total transaction of $569,709.00. Following the sale, the vice president now owns 16,899 shares in the company, valued at $4,584,529.71. The disclosure for this sale can be found here. Insiders sold 51,289 shares of company stock valued at $13,576,838 in the last ninety days. Insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Cummins

Several large investors have recently modified their holdings of the company. Commonwealth Equity Services LLC boosted its holdings in shares of Cummins by 3.3% in the third quarter. Commonwealth Equity Services LLC now owns 73,439 shares of the company’s stock valued at $16,778,000 after acquiring an additional 2,377 shares in the last quarter. Cambridge Investment Research Advisors Inc. lifted its stake in shares of Cummins by 4.7% during the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 33,204 shares of the company’s stock worth $7,586,000 after purchasing an additional 1,501 shares during the period. FinTrust Capital Advisors LLC boosted its stake in Cummins by 30.8% in the 3rd quarter. FinTrust Capital Advisors LLC now owns 263 shares of the company’s stock worth $60,000 after buying an additional 62 shares during the last quarter. Raymond James & Associates boosted its position in shares of Cummins by 4.3% in the third quarter. Raymond James & Associates now owns 257,730 shares of the company’s stock worth $58,881,000 after acquiring an additional 10,529 shares during the last quarter. Finally, Raymond James Financial Services Advisors Inc. grew its stake in shares of Cummins by 7.3% during the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 158,868 shares of the company’s stock valued at $36,295,000 after buying an additional 10,848 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins Company Profile

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.