Cummins Inc. (NYSE:CMI) Stock Has Consensus Target Price of $736.59

Shares of Cummins Inc. (NYSE:CMI) have received a consensus rating of “Moderate Buy” from the eighteen brokerages that are currently covering the stock, MarketBeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $731.06.

CMI has been the subject of a number of recent research reports. Zacks Research downgraded shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. DA Davidson raised their target price on shares of Cummins from $605.00 to $750.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. CICC Research began coverage on shares of Cummins in a research note on Sunday, August 23rd. They issued an “outperform” rating and a $781.00 target price for the company. Bank of America cut their price target on Cummins from $731.00 to $600.00 in a report on Thursday, September 24th. Finally, Citigroup increased their price target on Cummins from $770.00 to $790.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th.

Cummins Stock Down 0.8%

Shares of NYSE:CMI opened at $517.31 on Friday. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $71.21 billion, a P/E ratio of 26.43, a P/E/G ratio of 1.37 and a beta of 1.23. Cummins has a 52-week low of $400.72 and a 52-week high of $737.76. The stock’s fifty day simple moving average is $584.39 and its 200-day simple moving average is $621.68.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $6.43 EPS. As a group, equities research analysts forecast that Cummins will post 30.13 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 21st were given a dividend of $2.20 per share. This represents a $8.80 annualized dividend and a yield of 1.7%. This is a boost from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date was Friday, August 21st. Cummins’s dividend payout ratio (DPR) is currently 44.97%.

Insider Transactions at Cummins

In other Cummins news, VP Earl Newsome sold 698 shares of the firm’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, the vice president directly owned 4,479 shares of the company’s stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. QRG Capital Management Inc. boosted its position in shares of Cummins by 112.0% in the second quarter. QRG Capital Management Inc. now owns 120,855 shares of the company’s stock worth $86,195,000 after acquiring an additional 63,839 shares during the last quarter. Envestnet Portfolio Solutions Inc. increased its position in Cummins by 376.1% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 16,857 shares of the company’s stock worth $12,023,000 after purchasing an additional 13,316 shares during the last quarter. Security National Bank of Sioux City Iowa IA raised its stake in Cummins by 15.9% during the second quarter. Security National Bank of Sioux City Iowa IA now owns 6,781 shares of the company’s stock worth $4,836,000 after purchasing an additional 928 shares during the period. SkyView Investment Advisors LLC boosted its holdings in shares of Cummins by 14.0% in the 2nd quarter. SkyView Investment Advisors LLC now owns 2,200 shares of the company’s stock valued at $1,569,000 after purchasing an additional 271 shares during the last quarter. Finally, Sequoia Financial Advisors LLC boosted its holdings in shares of Cummins by 20.0% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,783 shares of the company’s stock valued at $5,551,000 after purchasing an additional 1,296 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.