Cummins (NYSE:CMI) Sets New 52-Week High – Still a Buy?

Shares of Cummins Inc. (NYSE:CMI) hit a new 52-week high on Thursday . The company traded as high as $650.37 and last traded at $639.4930, with a volume of 885035 shares changing hands. The stock had previously closed at $638.99.

Wall Street Analysts Forecast Growth

CMI has been the topic of a number of recent analyst reports. UBS Group set a $565.00 price objective on Cummins and gave the company a “neutral” rating in a research note on Friday, February 6th. Citigroup raised their price objective on Cummins from $630.00 to $710.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Robert W. Baird set a $580.00 price objective on Cummins in a research note on Friday, February 6th. Zacks Research downgraded Cummins from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 28th. Finally, Wells Fargo & Company lifted their price target on Cummins from $630.00 to $693.00 and gave the stock an “overweight” rating in a research report on Monday, April 13th. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Cummins presently has a consensus rating of “Moderate Buy” and a consensus target price of $600.27.

Cummins Price Performance

The stock’s 50-day moving average price is $573.84 and its 200 day moving average price is $527.35. The firm has a market cap of $88.36 billion, a price-to-earnings ratio of 31.16, a price-to-earnings-growth ratio of 2.02 and a beta of 1.14. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Thursday, February 5th. The company reported $5.81 EPS for the quarter, beating analysts’ consensus estimates of $5.17 by $0.64. The business had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $5.16 earnings per share. Equities research analysts predict that Cummins Inc. will post 26.03 earnings per share for the current year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, February 20th. Cummins’s dividend payout ratio (DPR) is presently 38.99%.

Insider Transactions at Cummins

In other Cummins news, Director William I. Miller sold 18,107 shares of Cummins stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the sale, the director owned 34,243 shares in the company, valued at $20,446,495.30. The trade was a 34.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Earl Newsome sold 1,300 shares of Cummins stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $583.67, for a total transaction of $758,771.00. Following the sale, the vice president owned 3,389 shares in the company, valued at $1,978,057.63. This represents a 27.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 31,195 shares of company stock valued at $18,397,489 over the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Cummins

A number of institutional investors have recently bought and sold shares of CMI. Northwestern Mutual Wealth Management Co. boosted its stake in Cummins by 10,317.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock worth $1,254,929,000 after buying an additional 2,434,876 shares in the last quarter. Norges Bank acquired a new stake in Cummins in the 4th quarter valued at $863,441,000. Boston Partners acquired a new stake in Cummins in the 3rd quarter valued at $473,471,000. London Co. of Virginia acquired a new stake in Cummins in the 3rd quarter valued at $231,732,000. Finally, SG Americas Securities LLC boosted its stake in Cummins by 257.9% in the 1st quarter. SG Americas Securities LLC now owns 736,670 shares of the company’s stock valued at $396,343,000 after buying an additional 530,812 shares in the last quarter. Institutional investors and hedge funds 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.