Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Beats Expectations By $0.76 EPS

Cummins (NYSE:CMI) issued its quarterly earnings data on Thursday. The company reported $5.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76, Zacks reports. The company had revenue of $8.32 billion during the quarter, compared to the consensus estimate of $7.97 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The firm’s revenue was down 1.6% compared to the same quarter last year. During the same period last year, the company earned $5.86 earnings per share.

Cummins Stock Up 2.4%

Shares of CMI stock traded up $11.30 on Friday, reaching $474.10. 1,372,869 shares of the company were exchanged, compared to its average volume of 880,308. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The company has a 50-day moving average of $419.28 and a 200-day moving average of $367.16. The company has a market cap of $65.32 billion, a price-to-earnings ratio of 22.29, a PEG ratio of 2.05 and a beta of 1.07. Cummins has a one year low of $260.02 and a one year high of $482.53.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, November 21st will be given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, November 21st. Cummins’s dividend payout ratio is 37.61%.

Insider Transactions at Cummins

In other Cummins news, VP Robert Enright sold 1,860 shares of the stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president owned 955 shares in the company, valued at approximately $384,158.30. This represents a 66.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mark Andrew Smith sold 8,000 shares of the firm’s stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $439.30, for a total value of $3,514,400.00. Following the completion of the sale, the chief financial officer directly owned 31,582 shares of the company’s stock, valued at $13,873,972.60. This trade represents a 20.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 37,949 shares of company stock valued at $15,674,705 in the last 90 days. Corporate insiders own 0.41% of the company’s stock.

Institutional Trading of Cummins

Hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC raised its holdings in Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock worth $736,000 after buying an additional 83 shares during the last quarter. Intech Investment Management LLC increased its position in shares of Cummins by 40.8% during the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock worth $1,240,000 after acquiring an additional 1,146 shares in the last quarter. Treasurer of the State of North Carolina raised its holdings in shares of Cummins by 2.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock worth $21,055,000 after acquiring an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC bought a new position in Cummins in the 2nd quarter valued at about $225,000. Finally, Osterweis Capital Management Inc. bought a new position in Cummins in the 2nd quarter valued at about $31,000. Institutional investors own 83.46% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Melius Research raised shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 target price for the company in a research report on Wednesday, September 3rd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cummins in a research note on Wednesday. Barclays increased their price objective on shares of Cummins from $387.00 to $430.00 and gave the stock an “equal weight” rating in a research report on Monday, October 20th. Sanford C. Bernstein restated a “market perform” rating and issued a $475.00 target price on shares of Cummins in a report on Friday. Finally, Evercore ISI reaffirmed an “outperform” rating on shares of Cummins in a research report on Tuesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $428.93.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.