Cummins (NYSE:CMI) Upgraded to “Buy” at Melius

Melius upgraded shares of Cummins (NYSE:CMI) from a hold rating to a buy rating in a report published on Wednesday, Marketbeat.com reports. They currently have $500.00 price objective on the stock.

Other equities research analysts have also issued reports about the company. Robert W. Baird lifted their price target on Cummins from $315.00 to $355.00 and gave the company a “neutral” rating in a report on Friday, July 11th. Barclays lifted their price target on Cummins from $381.00 to $387.00 and gave the company an “equal weight” rating in a report on Monday, July 21st. Truist Financial boosted their target price on Cummins from $342.00 to $380.00 and gave the stock a “hold” rating in a report on Thursday, August 7th. Evercore ISI restated an “outperform” rating on shares of Cummins in a report on Tuesday, August 19th. Finally, Wells Fargo & Company upgraded Cummins to an “overweight” rating in a report on Monday, August 11th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $389.29.

Cummins Stock Down 0.2%

Shares of Cummins stock opened at $400.13 on Wednesday. The firm has a market cap of $55.13 billion, a price-to-earnings ratio of 18.81, a P/E/G ratio of 1.94 and a beta of 1.02. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. Cummins has a 52-week low of $260.02 and a 52-week high of $408.38. The stock has a 50-day simple moving average of $370.88 and a 200-day simple moving average of $336.36.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion during the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm’s revenue was down 1.7% on a year-over-year basis. During the same period in the previous year, the company earned $5.26 EPS. On average, equities research analysts expect that Cummins will post 22.54 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd were given a $2.00 dividend. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 2.0%. This is an increase from Cummins’s previous quarterly dividend of $1.82. Cummins’s dividend payout ratio (DPR) is presently 37.61%.

Insider Buying and Selling

In other Cummins news, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $402.88, for a total value of $2,015,205.76. Following the transaction, the vice president directly owned 20,738 shares of the company’s stock, valued at $8,354,925.44. The trade was a 19.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Karen H. Quintos sold 1,307 shares of Cummins stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $405.33, for a total value of $529,766.31. Following the completion of the transaction, the director directly owned 5,227 shares in the company, valued at approximately $2,118,659.91. This represents a 20.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,039 shares of company stock worth $10,385,075. 0.41% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. BNP Paribas grew its holdings in shares of Cummins by 1.8% during the 2nd quarter. BNP Paribas now owns 1,422 shares of the company’s stock worth $466,000 after purchasing an additional 25 shares in the last quarter. Fiduciary Trust Co grew its holdings in shares of Cummins by 1.2% during the 4th quarter. Fiduciary Trust Co now owns 2,456 shares of the company’s stock worth $856,000 after purchasing an additional 28 shares in the last quarter. Orca Wealth Management LLC grew its holdings in shares of Cummins by 0.6% during the 2nd quarter. Orca Wealth Management LLC now owns 4,609 shares of the company’s stock worth $1,509,000 after purchasing an additional 28 shares in the last quarter. V Square Quantitative Management LLC grew its holdings in shares of Cummins by 1.0% during the 2nd quarter. V Square Quantitative Management LLC now owns 3,285 shares of the company’s stock worth $1,076,000 after purchasing an additional 31 shares in the last quarter. Finally, Empirical Finance LLC grew its holdings in shares of Cummins by 0.7% during the 2nd quarter. Empirical Finance LLC now owns 4,919 shares of the company’s stock worth $1,611,000 after purchasing an additional 32 shares in the last quarter. 83.46% of the stock is owned by institutional investors.

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.