Key Points
- Insider sale: Cummins insider Brett Michael Merritt sold 1,450 shares on Nov. 25 at an average price of $489.32 for about $709,514, cutting his stake by 13.52% to 9,271 shares valued at roughly $4.54M.
- Financials: Cummins posted an EPS beat of $5.59 vs. $4.83 estimated and revenue of $8.32B (vs. $7.97B expected), while the stock trades near its 12‑month high with a market cap of $68.2B and a P/E of 23.23.
- Dividend & analyst view: The company declared a $2.00 quarterly dividend (annualized $8.00, ~1.6% yield; ex-dividend Nov. 21, paid Dec. 4) and analysts hold a "Moderate Buy" consensus with an average target of $476.75 and several raised price targets (Argus $573).
Cummins Inc. (NYSE:CMI - Get Free Report) insider Brett Michael Merritt sold 1,450 shares of the company's stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total value of $709,514.00. Following the completion of the transaction, the insider directly owned 9,271 shares in the company, valued at approximately $4,536,485.72. The trade was a 13.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.
Cummins Stock Performance
Shares of NYSE CMI opened at $494.08 on Wednesday. The company has a 50 day simple moving average of $437.68 and a two-hundred day simple moving average of $384.59. The stock has a market cap of $68.20 billion, a price-to-earnings ratio of 23.23, a PEG ratio of 2.05 and a beta of 1.07. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. Cummins Inc. has a 12 month low of $260.02 and a 12 month high of $495.11.
Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.83 by $0.76. The firm had revenue of $8.32 billion during the quarter, compared to analysts' expectations of $7.97 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm's revenue was down 1.6% compared to the same quarter last year. During the same quarter last year, the company posted $5.86 earnings per share. As a group, analysts predict that Cummins Inc. will post 22.54 earnings per share for the current year.
Cummins Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 4th. Shareholders of record on Friday, November 21st will be issued a $2.00 dividend. The ex-dividend date of this dividend is Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a yield of 1.6%. Cummins's payout ratio is presently 41.52%.
Analysts Set New Price Targets
CMI has been the topic of several recent analyst reports. Zacks Research lowered shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Thursday, November 6th. Melius raised Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, September 3rd. Argus raised their price objective on Cummins from $459.00 to $573.00 and gave the company a "buy" rating in a report on Tuesday. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $475.00 target price on shares of Cummins in a research report on Friday, November 7th. Twelve research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $476.75.
View Our Latest Stock Analysis on CMI
Hedge Funds Weigh In On Cummins
A number of institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of Cummins during the 2nd quarter valued at approximately $505,941,000. Boston Partners acquired a new position in shares of Cummins in the 3rd quarter valued at $473,471,000. Raymond James Financial Inc. grew its holdings in shares of Cummins by 152.3% during the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company's stock worth $424,414,000 after purchasing an additional 817,384 shares during the period. London Co. of Virginia acquired a new stake in shares of Cummins during the 3rd quarter worth about $231,732,000. Finally, American Century Companies Inc. lifted its position in Cummins by 138.8% in the second quarter. American Century Companies Inc. now owns 909,653 shares of the company's stock valued at $297,912,000 after buying an additional 528,689 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.
About Cummins
(
Get Free Report)
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.
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