Key Points
- Insider selling: Cummins insider Brett Michael Merritt sold 701 shares for about $482,813.75 at an average price of $688.75, reducing his direct ownership by 6.31%.
- Strong quarterly results: Cummins reported EPS of $6.15, beating estimates by $0.52, while revenue of $8.40 billion also edged above expectations and rose 2.7% year over year.
- Positive outlook from Wall Street: Analysts remain generally constructive, with recent buy ratings and higher price targets, and the stock carries a consensus Moderate Buy rating with an average target of $677.87.
Cummins Inc. (NYSE:CMI - Get Free Report) insider Brett Michael Merritt sold 701 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the sale, the insider directly owned 10,404 shares of the company's stock, valued at approximately $7,165,755. This represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.
Cummins Stock Up 0.3%
CMI opened at $704.49 on Wednesday. The business has a 50 day moving average price of $593.30 and a two-hundred day moving average price of $549.49. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. The company has a market cap of $97.21 billion, a PE ratio of 36.56, a P/E/G ratio of 1.77 and a beta of 1.27. Cummins Inc. has a 52 week low of $307.90 and a 52 week high of $718.08.
Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter in the previous year, the firm posted $5.96 EPS. The firm's quarterly revenue was up 2.7% on a year-over-year basis. As a group, research analysts anticipate that Cummins Inc. will post 28.39 EPS for the current year.
Cummins Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd will be given a dividend of $2.00 per share. The ex-dividend date is Friday, May 22nd. This represents a $8.00 annualized dividend and a yield of 1.1%. Cummins's payout ratio is presently 41.52%.
Institutional Investors Weigh In On Cummins
A number of institutional investors and hedge funds have recently modified their holdings of CMI. Thompson Investment Management Inc. acquired a new stake in shares of Cummins in the 4th quarter worth approximately $26,000. Activest Wealth Management grew its holdings in shares of Cummins by 537.5% in the 4th quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after acquiring an additional 43 shares during the period. Cedar Mountain Advisors LLC lifted its stake in Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares in the last quarter. Wellington Shields Capital Management LLC purchased a new stake in Cummins in the 4th quarter valued at approximately $27,000. Finally, Flagship Wealth Advisors LLC purchased a new stake in Cummins in the 3rd quarter valued at approximately $28,000. Institutional investors and hedge funds own 83.46% of the company's stock.
Cummins News Summary
Here are the key news stories impacting Cummins this week:
- Positive Sentiment: Cummins continues to benefit from its recent earnings beat, with quarterly EPS of $6.15 topping estimates and revenue coming in slightly above expectations, reinforcing confidence in the company’s operating momentum.
- Positive Sentiment: Several analysts have turned more bullish on CMI, including upgrades and higher price targets from firms such as Barclays and Citigroup, which can help support the stock as investors reassess valuation.
- Positive Sentiment: Recent commentary highlighted Cummins as a strong momentum stock and pointed to broader growth drivers, including exposure to power technology and related industrial demand. Article Title
- Neutral Sentiment: Separate articles compared Cummins’ year-to-date performance with other auto, tires and truck stocks; this is more of a relative-performance check than a new company-specific catalyst. Article Title
- Negative Sentiment: Recent insider selling by executives including VP Nathan Stoner, EVP Bonnie Fetch and VP Marvin Boakye may temper enthusiasm somewhat, since insider sales can sometimes signal limited near-term upside or simply portfolio diversification.
Wall Street Analysts Forecast Growth
Several research firms have issued reports on CMI. Citigroup boosted their target price on Cummins from $710.00 to $770.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Robert W. Baird set a $700.00 target price on Cummins in a research report on Wednesday, May 6th. Evercore reiterated an "outperform" rating and set a $845.00 target price on shares of Cummins in a research report on Monday. Finally, Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, Cummins currently has a consensus rating of "Moderate Buy" and an average price target of $677.87.
View Our Latest Report on CMI
Cummins Company Profile
(
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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