Cummins (NYSE:CMI) Hits New 1-Year High – Here’s Why

Cummins Inc. (NYSE:CMI)’s share price hit a new 52-week high on Thursday . The stock traded as high as $379.75 and last traded at $379.39, with a volume of 122616 shares. The stock had previously closed at $378.33.

Wall Street Analyst Weigh In

CMI has been the subject of several recent analyst reports. StockNews.com raised shares of Cummins from a “buy” rating to a “strong-buy” rating in a report on Wednesday, November 6th. Truist Financial upped their target price on shares of Cummins from $349.00 to $371.00 and gave the stock a “hold” rating in a report on Wednesday, October 9th. The Goldman Sachs Group increased their price objective on shares of Cummins from $324.00 to $370.00 and gave the company a “neutral” rating in a report on Wednesday, November 6th. Evercore ISI raised shares of Cummins from an “in-line” rating to an “outperform” rating and increased their price objective for the company from $294.00 to $408.00 in a report on Wednesday, November 13th. Finally, Vertical Research downgraded shares of Cummins from a “buy” rating to a “hold” rating and set a $350.00 price objective for the company. in a report on Wednesday, November 6th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Cummins presently has a consensus rating of “Hold” and an average target price of $337.67.

Cummins Trading Up 0.6 %

The firm has a market capitalization of $52.20 billion, a PE ratio of 24.99, a price-to-earnings-growth ratio of 1.82 and a beta of 0.99. The stock’s 50-day moving average price is $346.31 and its 200 day moving average price is $309.20. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.32 and a quick ratio of 0.79.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, November 5th. The company reported $5.86 EPS for the quarter, topping analysts’ consensus estimates of $4.89 by $0.97. The business had revenue of $8.46 billion for the quarter, compared to analyst estimates of $8.29 billion. Cummins had a net margin of 6.13% and a return on equity of 26.86%. The company’s quarterly revenue was up .3% compared to the same quarter last year. During the same period last year, the company posted $4.73 earnings per share. On average, sell-side analysts expect that Cummins Inc. will post 20.75 EPS for the current fiscal year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 5th. Shareholders of record on Friday, November 22nd will be paid a $1.82 dividend. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $7.28 annualized dividend and a yield of 1.91%. Cummins’s dividend payout ratio (DPR) is 48.08%.

Insider Buying and Selling at Cummins

In other news, VP Sharon R. Barner sold 2,001 shares of Cummins stock in a transaction on Monday, November 11th. The shares were sold at an average price of $358.43, for a total transaction of $717,218.43. Following the completion of the sale, the vice president now directly owns 20,803 shares in the company, valued at approximately $7,456,419.29. The trade was a 8.77 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders sold a total of 6,489 shares of company stock worth $2,357,531 over the last three months. Corporate insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Cummins

Institutional investors and hedge funds have recently made changes to their positions in the stock. Cultivar Capital Inc. acquired a new stake in shares of Cummins during the second quarter worth $28,000. Prospera Private Wealth LLC purchased a new position in shares of Cummins during the third quarter worth $32,000. CarsonAllaria Wealth Management Ltd. purchased a new position in shares of Cummins during the second quarter worth $28,000. Kathleen S. Wright Associates Inc. purchased a new position in shares of Cummins during the third quarter worth $34,000. Finally, Bangor Savings Bank raised its holdings in shares of Cummins by 39.2% during the second quarter. Bangor Savings Bank now owns 142 shares of the company’s stock worth $39,000 after purchasing an additional 40 shares during the last quarter. 83.46% of the stock is currently 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.