Cummins (NYSE:CMI) Sets New 1-Year High – Here’s Why

Shares of Cummins Inc. (NYSE:CMI) hit a new 52-week high during trading on Wednesday . The stock traded as high as $584.70 and last traded at $580.2980, with a volume of 499966 shares traded. The stock had previously closed at $565.80.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Barclays restated a “positive” rating on shares of Cummins in a research note on Friday, December 19th. Weiss Ratings restated a “buy (b-)” rating on shares of Cummins in a research note on Monday, December 29th. Zacks Research raised Cummins from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, December 30th. Raymond James Financial raised Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 price objective for the company in a report on Monday, December 22nd. Finally, UBS Group raised shares of Cummins from a “sell” rating to a “neutral” rating in a report on Tuesday, November 25th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Cummins has an average rating of “Moderate Buy” and a consensus target price of $514.00.

Cummins Stock Performance

The business’s fifty day moving average price is $514.41 and its 200-day moving average price is $441.01. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.77 and a quick ratio of 1.11. The stock has a market capitalization of $80.27 billion, a PE ratio of 30.18, a P/E/G ratio of 2.03 and a beta of 1.12.

Cummins (NYSE:CMI) last posted 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. Cummins had a net margin of 7.95% and a return on equity of 26.02%. The business had revenue of $8.32 billion for the quarter, compared to analyst estimates of $7.97 billion. During the same quarter in the prior year, the firm posted $5.86 EPS. Cummins’s revenue was down 1.6% on a year-over-year basis. As a group, equities research analysts expect that Cummins Inc. will post 22.54 EPS for the current year.

Insider Activity at Cummins

In related news, insider Brett Michael Merritt sold 1,450 shares of Cummins stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the completion of the sale, the insider owned 9,271 shares of the company’s stock, valued at approximately $4,536,485.72. This trade represents a 13.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark Andrew Smith sold 13,110 shares of the company’s stock in a transaction dated Thursday, November 6th. The stock was sold at an average price of $470.66, for a total value 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 19,330 shares of company stock valued at $9,135,364. Company insiders own 0.41% of the company’s stock.

Hedge Funds Weigh In On Cummins

A number of hedge funds and other institutional investors have recently bought and sold shares of CMI. Norges Bank bought a new stake in shares of Cummins during the 2nd quarter worth $505,941,000. Boston Partners bought a new stake in Cummins during the third quarter worth about $473,471,000. London Co. of Virginia purchased a new position in shares of Cummins in the 3rd quarter worth about $231,732,000. American Century Companies Inc. raised its holdings in shares of Cummins by 138.8% during the 2nd quarter. American Century Companies Inc. now owns 909,653 shares of the company’s stock valued at $297,912,000 after buying an additional 528,689 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in Cummins by 50.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company’s stock worth $612,715,000 after buying an additional 488,430 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Cummins Company Profile

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.