Cummins (NYSE:CMI) Hits New 1-Year High – Time to Buy?

Cummins Inc. (NYSE:CMI) shares hit a new 52-week high during trading on Thursday . The company traded as high as $592.53 and last traded at $574.7670, with a volume of 140420 shares trading hands. The stock had previously closed at $577.86.

Analysts Set New Price Targets

A number of equities analysts have issued reports on CMI shares. Wolfe Research lowered Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 target price on the stock. in a research report on Monday. Wells Fargo & Company increased their price objective on shares of Cummins from $599.00 to $630.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Citigroup boosted their target price on shares of Cummins from $580.00 to $630.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Truist Financial increased their price target on shares of Cummins from $628.00 to $653.00 and gave the stock a “buy” rating in a research report on Thursday, December 18th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $522.07.

Cummins Price Performance

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 company has a fifty day moving average price of $527.55 and a 200 day moving average price of $450.43. The company has a market capitalization of $80.38 billion, a P/E ratio of 30.19, a price-to-earnings-growth ratio of 2.03 and a beta of 1.12.

Cummins (NYSE:CMI) last announced its quarterly 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 business had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. During the same quarter last year, the business posted $5.86 EPS. The business’s revenue was down 1.6% on a year-over-year basis. On average, sell-side analysts forecast that Cummins Inc. will post 22.54 EPS for the current fiscal year.

Insider Activity

In other Cummins news, CEO Jennifer Rumsey sold 4,570 shares of the business’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the completion of the transaction, the chief executive officer directly owned 42,880 shares of the company’s stock, valued at $20,320,403.20. The trade was a 9.63% decrease in their position. 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 dated Thursday, November 6th. The stock was 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 of the company’s stock, valued at approximately $14,864,384.12. This trade represents a 29.33% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 19,130 shares of company stock valued at $9,045,544. 0.41% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cummins

Several hedge funds and other institutional investors have recently made changes to their positions in CMI. Motley Fool Asset Management LLC raised its holdings in shares of Cummins by 9.7% in the second quarter. Motley Fool Asset Management LLC now owns 7,018 shares of the company’s stock valued at $2,298,000 after buying an additional 623 shares during the last quarter. Applied Finance Capital Management LLC increased its position in Cummins by 14.4% in the 2nd quarter. Applied Finance Capital Management LLC now owns 60,797 shares of the company’s stock valued at $19,910,000 after acquiring an additional 7,656 shares in the last quarter. New York State Teachers Retirement System increased its position in Cummins by 2.1% in the 3rd quarter. New York State Teachers Retirement System now owns 111,911 shares of the company’s stock valued at $47,268,000 after acquiring an additional 2,305 shares in the last quarter. Bailard Inc. raised its stake in shares of Cummins by 7.2% in the third quarter. Bailard Inc. now owns 59,830 shares of the company’s stock worth $25,270,000 after acquiring an additional 4,035 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Cummins by 6.7% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 277,958 shares of the company’s stock worth $91,054,000 after purchasing an additional 17,566 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

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.