Cummins (NYSE:CMI) Stock Bumped Up to Buy by Wall Street Zen

Wall Street Zen upgraded shares of Cummins (NYSE:CMI) from a hold rating to a buy rating in a research note released on Tuesday morning,Wall Street Zen reports.

A number of other research analysts have also recently issued reports on the company. Barclays cut their price objective on Cummins from $675.00 to $600.00 and set an “overweight” rating for the company in a report on Monday. Morgan Stanley increased their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. DA Davidson lifted their price target on shares of Cummins from $605.00 to $750.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Sanford C. Bernstein restated a “market perform” rating and issued a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. Finally, UBS Group reduced their price target on shares of Cummins from $835.00 to $741.00 and set a “buy” rating on the stock in a research report on Wednesday, September 30th. Twelve analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, Cummins presently has a consensus rating of “Moderate Buy” and a consensus target price of $658.29.

Cummins Trading Down 2.7%

CMI stock opened at $454.09 on Tuesday. The company has a current ratio of 1.74, a quick ratio of 1.13 and a debt-to-equity ratio of 0.46. The firm has a market cap of $62.51 billion, a P/E ratio of 18.95, a P/E/G ratio of 1.24 and a beta of 1.26. Cummins has a 1-year low of $443.62 and a 1-year high of $737.76. The business’s 50 day moving average is $522.29 and its 200-day moving average is $598.38.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Thursday, November 5th. The company reported $8.25 EPS for the quarter, beating the consensus estimate of $8.20 by $0.05. Cummins had a return on equity of 26.82% and a net margin of 9.26%. The business had revenue of $9.44 billion for the quarter, compared to analyst estimates of $9.89 billion. During the same quarter in the previous year, the firm earned $5.59 EPS. Cummins’s quarterly revenue was up 13.5% on a year-over-year basis. Equities analysts anticipate that Cummins will post 29.83 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be paid a $2.20 dividend. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a yield of 1.9%. Cummins’s payout ratio is currently 36.73%.

Insider Activity at Cummins

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Private Advisor Group LLC increased its holdings in shares of Cummins by 130.0% in the third quarter. Private Advisor Group LLC now owns 22,203 shares of the company’s stock valued at $11,469,000 after purchasing an additional 12,550 shares in the last quarter. Ieq Capital LLC raised its position in Cummins by 7.7% in the 3rd quarter. Ieq Capital LLC now owns 68,443 shares of the company’s stock worth $35,355,000 after purchasing an additional 4,908 shares during the last quarter. Focus Advisor Solutions LLC lifted its holdings in Cummins by 71.7% during the 3rd quarter. Focus Advisor Solutions LLC now owns 8,929 shares of the company’s stock worth $4,613,000 after buying an additional 3,728 shares in the last quarter. Checchi Capital Advisers LLC lifted its holdings in Cummins by 1.5% during the 3rd quarter. Checchi Capital Advisers LLC now owns 2,515 shares of the company’s stock worth $1,299,000 after buying an additional 38 shares in the last quarter. Finally, Boston Partners lifted its holdings in Cummins by 15.0% during the 3rd quarter. Boston Partners now owns 1,058,793 shares of the company’s stock worth $548,299,000 after buying an additional 137,953 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Trending Headlines about Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins unveiled its new S29 mining engine at its Chongqing plant, expanding its product offering for the mining market. The announcement could support growth, though the article details provided do not quantify its expected sales impact. Article: Cummins Unveils New S29 Mining Engine At Chongqing Engine Plant
• Positive Sentiment: AI data-center power demand and a strong order backlog are cited as growth drivers. However, supply constraints and weakness in the truck market may limit the upside. Article: Cummins After Q3: Is the Stock a Buy on AI Data Center Boom?
• Neutral Sentiment: Cummins underperformed competitors on Monday despite a gain in its shares, indicating relative weakness against peers. Article: Cummins stock underperforms competitors
• Negative Sentiment: Analysts have cut fair-value estimates, citing reduced expectations for growth and margins. Barclays lowered its target from $675 to $600 but maintained an “overweight” rating; JPMorgan cut its target from $600 to $465 and kept a “neutral” rating. Wells Fargo, Citigroup and Truist also reduced their targets, adding to pressure on investor sentiment. Article: Cummins fair value cut as analysts trim growth and margin views Article: Barclays lowers Cummins price target Article: JPMorgan lowers Cummins price target

Cummins Company Profile

Cummins Inc. is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications. The company’s offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.