Key Points
- Insider sale: Cummins VP Jennifer Mary Bush sold 4,270 shares on Feb. 10 for $2,497,651.10, cutting her stake by 22.01% to 15,130 shares (≈$8.85M).
- Strong quarter and dividend: Cummins beat estimates with Q earnings of $5.81 EPS (vs. $5.17 expected) and $8.54B revenue, and announced a $2.00 quarterly dividend (annualized $8.00, 1.4% yield; ex-dividend Feb. 20).
- Analyst outlook: The stock carries a consensus "Moderate Buy" rating with an average target of $588.93, and several firms recently raised price targets (e.g., Raymond James $675, Argus $696, Barclays $610).
Cummins Inc. (NYSE:CMI - Get Free Report) VP Earl Newsome sold 1,300 shares of the firm's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $583.67, for a total transaction of $758,771.00. Following the completion of the sale, the vice president owned 3,389 shares of the company's stock, valued at $1,978,057.63. This trade represents a 27.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink.
Cummins Price Performance
Shares of NYSE CMI opened at $586.30 on Tuesday. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. The business's 50 day moving average price is $559.60 and its two-hundred day moving average price is $480.14. The company has a market cap of $81.01 billion, a PE ratio of 28.57, a price-to-earnings-growth ratio of 1.88 and a beta of 1.13. Cummins Inc. has a twelve month low of $260.02 and a twelve month high of $617.98.
Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported $5.81 EPS for the quarter, topping the consensus estimate of $5.17 by $0.64. The company had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.09 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period in the previous year, the company posted $5.16 EPS. On average, analysts predict that Cummins Inc. will post 22.54 EPS for the current year.
Cummins Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Friday, February 20th will be given a $2.00 dividend. The ex-dividend date of this dividend is Friday, February 20th. This represents a $8.00 annualized dividend and a dividend yield of 1.4%. Cummins's dividend payout ratio is presently 38.99%.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently bought and sold shares of CMI. Motley Fool Asset Management LLC grew its holdings in shares of Cummins by 9.7% during the 2nd quarter. Motley Fool Asset Management LLC now owns 7,018 shares of the company's stock worth $2,298,000 after acquiring an additional 623 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its position in shares of Cummins by 8.4% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 31,031 shares of the company's stock valued at $13,107,000 after purchasing an additional 2,417 shares in the last quarter. New York State Teachers Retirement System grew its stake in Cummins by 2.1% in the third quarter. New York State Teachers Retirement System now owns 111,911 shares of the company's stock worth $47,268,000 after purchasing an additional 2,305 shares during the period. Bailard Inc. raised its holdings in Cummins by 7.2% in the third quarter. Bailard Inc. now owns 59,830 shares of the company's stock worth $25,270,000 after purchasing an additional 4,035 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in Cummins by 6.7% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 277,958 shares of the company's stock valued at $91,054,000 after buying an additional 17,566 shares during the period. Institutional investors and hedge funds own 83.46% of the company's stock.
Wall Street Analyst Weigh In
Several brokerages recently commented on CMI. Raymond James Financial lifted their target price on shares of Cummins from $585.00 to $675.00 and gave the stock an "outperform" rating in a report on Monday, February 9th. Wells Fargo & Company upped their target price on Cummins from $599.00 to $630.00 and gave the company an "overweight" rating in a research report on Friday, January 23rd. Truist Financial reiterated a "buy" rating and set a $703.00 target price (up previously from $653.00) on shares of Cummins in a research note on Friday, February 6th. Citigroup boosted their price target on Cummins from $580.00 to $630.00 and gave the company a "buy" rating in a research note on Tuesday, January 13th. Finally, Sanford C. Bernstein set a $600.00 price objective on Cummins and gave the company a "market perform" rating in a report on Friday, February 6th. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $588.93.
Get Our Latest Stock Analysis on CMI
About Cummins
(
Get Free Report)
Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world's leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.
The company's product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.
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