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

Cummins Inc. (NYSE:CMI)’s share price reached a new 52-week high during trading on Wednesday . The stock traded as high as $612.10 and last traded at $603.4940, with a volume of 918888 shares. The stock had previously closed at $595.13.

Analyst Ratings Changes

A number of analysts recently commented on CMI shares. Wells Fargo & Company increased their price target on Cummins from $599.00 to $630.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Truist Financial raised their target price on Cummins from $628.00 to $653.00 and gave the company a “buy” rating in a research report on Thursday, December 18th. Zacks Research downgraded shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Wolfe Research downgraded shares of Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price objective for the company. in a report on Monday, January 26th. Finally, Argus lifted their price objective on shares of Cummins from $459.00 to $573.00 and gave the stock a “buy” rating in a research report on Tuesday, November 25th. Eleven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $522.07.

Cummins Trading Up 1.4%

The company has a market cap of $83.31 billion, a P/E ratio of 31.32, a price-to-earnings-growth ratio of 2.09 and a beta of 1.13. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52. The firm’s 50-day moving average price is $536.40 and its 200-day moving average price is $458.07.

Cummins (NYSE:CMI) last posted its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.83 by $0.76. Cummins had a return on equity of 26.02% and a net margin of 7.95%.The firm had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. During the same quarter in the prior year, the business posted $5.86 earnings per share. The business’s quarterly 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 earnings per share for the current fiscal year.

Insider Transactions at Cummins

In other Cummins news, insider Brett Michael Merritt sold 1,450 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the sale, the insider owned 9,271 shares in the company, valued at $4,536,485.72. This trade represents a 13.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Mark Andrew Smith sold 13,110 shares of the company’s stock in a transaction that occurred on 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 sale, the chief financial officer directly owned 31,582 shares of the company’s stock, valued at approximately $14,864,384.12. This represents a 29.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,130 shares of company stock valued at $9,045,544 in the last quarter. Insiders own 0.41% of the company’s stock.

Hedge Funds Weigh In On Cummins

A number of large investors have recently bought and sold shares of the stock. Thompson Investment Management Inc. bought a new stake in Cummins during the 4th quarter valued at $26,000. Activest Wealth Management increased its position in shares of Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock valued at $26,000 after acquiring an additional 43 shares during the period. Ares Financial Consulting LLC bought a new position in shares of Cummins during the fourth quarter valued at about $29,000. Holos Integrated Wealth LLC purchased a new stake in shares of Cummins during the fourth quarter worth about $32,000. Finally, Palouse Capital Management Inc. bought a new stake in shares of Cummins in the fourth quarter worth about $33,000. 83.46% of the stock is owned by hedge funds and other institutional investors.

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.