Cummins Inc. (NYSE:CMI) Receives Average Rating of “Hold” from Analysts

Shares of Cummins Inc. (NYSE:CMI) have received a consensus rating of “Hold” from the thirteen brokerages that are covering the stock, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $389.50.

A number of analysts recently weighed in on the stock. UBS Group decreased their price target on shares of Cummins from $432.00 to $400.00 and set a “buy” rating for the company in a research report on Tuesday, March 18th. Citigroup dropped their price target on shares of Cummins from $435.00 to $430.00 and set a “buy” rating on the stock in a research note on Tuesday, January 14th. StockNews.com downgraded Cummins from a “buy” rating to a “hold” rating in a research note on Tuesday. JPMorgan Chase & Co. cut their price objective on Cummins from $420.00 to $375.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 18th. Finally, Bank of America upgraded Cummins from an “underperform” rating to a “neutral” rating and boosted their price target for the company from $354.00 to $358.00 in a report on Tuesday, January 14th.

Cummins Trading Up 2.8 %

Shares of CMI opened at $331.02 on Tuesday. The stock’s fifty day simple moving average is $355.39 and its 200 day simple moving average is $347.98. Cummins has a twelve month low of $261.51 and a twelve month high of $387.90. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $45.51 billion, a P/E ratio of 11.75, a price-to-earnings-growth ratio of 2.19 and a beta of 1.01.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.70 by $0.46. The business had revenue of $8.45 billion during the quarter, compared to analysts’ expectations of $8.06 billion. Cummins had a return on equity of 27.12% and a net margin of 11.57%. The company’s revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.14 EPS. On average, equities research analysts forecast that Cummins will post 22.54 earnings per share for the current year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 6th. Stockholders of record on Friday, February 21st were issued a dividend of $1.82 per share. The ex-dividend date of this dividend was Friday, February 21st. This represents a $7.28 annualized dividend and a dividend yield of 2.20%. Cummins’s dividend payout ratio (DPR) is 25.84%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CMI. Norges Bank bought a new position in Cummins during the fourth quarter valued at $499,490,000. Raymond James Financial Inc. bought a new position in shares of Cummins in the 4th quarter valued at about $187,082,000. Vanguard Group Inc. grew its position in Cummins by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 16,961,646 shares of the company’s stock worth $5,912,830,000 after acquiring an additional 250,650 shares in the last quarter. Northern Trust Corp increased its stake in Cummins by 15.1% during the fourth quarter. Northern Trust Corp now owns 1,883,012 shares of the company’s stock worth $656,418,000 after acquiring an additional 246,807 shares during the last quarter. Finally, Neuberger Berman Group LLC raised its position in Cummins by 57.0% during the fourth quarter. Neuberger Berman Group LLC now owns 643,482 shares of the company’s stock valued at $224,317,000 after purchasing an additional 233,694 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

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.