Cummins (NYSE:CMI) Reaches New 12-Month High – What’s Next?

Cummins Inc. (NYSE:CMI) shares hit a new 52-week high during trading on Monday . The company traded as high as $500.26 and last traded at $498.9550, with a volume of 125983 shares. The stock had previously closed at $497.98.

Analyst Ratings Changes

CMI has been the topic of a number of recent research reports. UBS Group raised Cummins from a “sell” rating to a “neutral” rating in a report on Tuesday, November 25th. Truist Financial set a $628.00 price objective on Cummins and gave the stock a “buy” rating in a research note on Monday, November 24th. Weiss Ratings restated a “buy (b-)” rating on shares of Cummins in a research note on Monday, November 24th. Melius upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 target price for the company in a research report on Wednesday, September 3rd. Finally, Barclays lifted their price target on shares of Cummins from $430.00 to $515.00 and gave the company an “equal weight” rating in a report on Tuesday, November 11th. Twelve analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Cummins currently has a consensus rating of “Moderate Buy” and an average target price of $476.75.

Cummins Stock Performance

The stock has a market cap of $68.84 billion, a price-to-earnings ratio of 23.44, a P/E/G 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. The firm has a fifty day simple moving average of $442.27 and a 200-day simple moving average of $388.05.

Cummins (NYSE:CMI) last released its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. The company had revenue of $8.32 billion during the quarter, compared to the consensus estimate of $7.97 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm’s quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $5.86 earnings per share. Analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, November 21st will be paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, November 21st. Cummins’s dividend payout ratio (DPR) is 41.52%.

Insider Transactions at Cummins

In related news, insider Brett Michael Merritt sold 1,450 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total transaction of $709,514.00. Following the completion of the sale, the insider directly owned 9,271 shares of the company’s stock, valued at $4,536,485.72. The trade was a 13.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Mark Andrew Smith sold 13,110 shares of the stock in a transaction that occurred on Thursday, November 6th. The shares were sold at an average price of $470.66, for a total transaction of $6,170,352.60. Following the completion of the transaction, the chief financial officer owned 31,582 shares in the company, valued at $14,864,384.12. This represents a 29.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 36,410 shares of company stock worth $16,424,574 in the last quarter. 0.41% of the stock is owned by company insiders.

Institutional Trading of Cummins

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in Cummins during the second 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. increased its position in shares of Cummins by 152.3% in the 1st quarter. Raymond James Financial Inc. now owns 1,354,052 shares of the company’s stock valued at $424,414,000 after buying an additional 817,384 shares in the last quarter. London Co. of Virginia acquired a new stake in Cummins during the 3rd quarter worth $231,732,000. Finally, American Century Companies Inc. lifted its holdings in Cummins by 138.8% during the second quarter. American Century Companies Inc. now owns 909,653 shares of the company’s stock worth $297,912,000 after acquiring an additional 528,689 shares in the last quarter. 83.46% of the stock is owned by institutional investors.

Cummins Company Profile

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.