Cummins (NYSE:CMI) Hits New 1-Year High – What’s Next?

Cummins Inc. (NYSE:CMI)’s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $723.84 and last traded at $726.7780, with a volume of 80881 shares traded. The stock had previously closed at $699.97.

Analyst Ratings Changes

A number of equities research analysts have recently commented on CMI shares. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Cummins in a report on Friday, May 22nd. Wells Fargo & Company restated an “overweight” rating and issued a $874.00 price target on shares of Cummins in a research report on Wednesday. Evercore reaffirmed an “outperform” rating and set a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. Truist Financial set a $815.00 price objective on Cummins in a research report on Wednesday, May 6th. Finally, Citigroup lifted their target price on Cummins from $710.00 to $770.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $731.86.

Cummins Trading Up 3.7%

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 business has a fifty day simple moving average of $654.05 and a 200 day simple moving average of $586.69. The company has a market cap of $100.14 billion, a price-to-earnings ratio of 37.79, a P/E/G ratio of 1.66 and a beta of 1.24.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping analysts’ consensus estimates of $5.63 by $0.52. The business had revenue of $8.40 billion for the quarter, compared to analysts’ expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the prior year, the company posted $5.96 EPS. On average, equities analysts anticipate that Cummins Inc. will post 29.29 EPS for the current fiscal year.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, May 22nd. Cummins’s dividend payout ratio is presently 41.52%.

Insider Buying and Selling

In other news, VP Jennifer Mary Bush sold 5,000 shares of Cummins stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president directly owned 11,986 shares in the company, valued at approximately $8,344,773.06. This trade represents a 29.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Marvin Boakye sold 3,481 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $679.90, for a total value of $2,366,731.90. Following the sale, the vice president directly owned 8,508 shares in the company, valued at $5,784,589.20. This trade represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,579 shares of company stock valued at $9,377,684 in the last 90 days. 0.30% of the stock is owned by corporate insiders.

Institutional Trading of Cummins

Large investors have recently bought and sold shares of the company. Thompson Investment Management Inc. purchased a new stake in shares of Cummins in the 4th quarter worth about $26,000. Activest Wealth Management raised its position in Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock worth $26,000 after acquiring an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC raised its position in Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock worth $26,000 after acquiring an additional 45 shares during the last quarter. Wellington Shields Capital Management LLC purchased a new stake in shares of Cummins in the fourth quarter valued at about $27,000. Finally, Key Financial Inc grew its position in shares of Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company’s stock valued at $28,000 after purchasing an additional 20 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

About Cummins

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.