Before Investing In Cummins Inc. (NYSE:CMI), Here Are Some Things To Consider

The stock of Cummins Inc. (NYSE:CMI) last traded at $240.46, down -0.24% from the previous session.

Data from the available sources indicates that Cummins Inc. (NYSE:CMI) is covered by 25 analysts. The consensus rating among analysts is ‘Overweight’. As we calculate the median target price by taking the range between a high of $304.00 and a low of $216.00, we find $264.50. Given the previous closing price of $241.04, this indicates a potential upside of 9.73 percent. CMI stock price is now -0.98% away from the 50-day moving average and 11.01% away from the 200-day moving average. The market capitalization of the company currently stands at $33.83B.

In total, 15 analysts have assigned it a hold rating, and 10 have given it a buy rating. Brokers who have rated the stock have averaged $261.77 as their price target over the next twelve months.

On July 20, 2022, Bernstein Downgraded its previous ‘Outperform’ rating to ‘Mkt Perform’ on the stock reducing its target price from $238 to quote $190, while ‘Morgan Stanley’ rates the stock as ‘Equal-Weight’.

In other news, ChangDiaz Franklin R, Director sold 3,200 shares of the company’s stock on Nov 16. The stock was sold for $797,887 at an average price of $249.34. Upon completion of the transaction, the Director now directly owns 1,642 shares in the company, valued at $0.39 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Nov 16, Director Di Leo Allen Bruno V sold 950 shares of the business’s stock. A total of $237,786 was realized by selling the stock at an average price of $250.30. This leaves the insider owning 7,431 shares of the company worth $1.79 million. Insiders disposed of 304,447 shares of company stock worth roughly $73.21 million over the past 1 year. A total of 0.20% of the company’s stock is owned by insiders.

There have been several recent changes in the stakes of large investors in CMI stock. A new stake in Cummins Inc. shares was purchased by POINT72 ASSET MANAGEMENT, L.P. during the first quarter worth $20,833,000. TODD ASSET MANAGEMENT LLC invested $19,351,000 in shares of CMI during the first quarter. In the first quarter, EXODUSPOINT CAPITAL MANAGEMENT, LP acquired a new stake in Cummins Inc. valued at approximately $17,250,000. UBS OCONNOR LLC acquired a new stake in CMI for approximately $10,776,000. SUMMIT FINANCIAL WEALTH ADVISORS, LLC purchased a new stake in CMI valued at around $9,164,000 in the second quarter. In total, there are 1,630 active investors with 85.40% ownership of the company’s stock.

With an opening price of $241.59 on Wednesday morning, Cummins Inc. (NYSE: CMI) set off the trading day. During the past 12 months, Cummins Inc. has had a low of $184.27 and a high of $254.09. As of last week, the company has a debt-to-equity ratio of 0.97, a current ratio of 1.40, and a quick ratio of 0.80. The fifty day moving average price for CMI is $242.85 and a two-hundred day moving average price translates $216.62 for the stock.

The latest earnings results from Cummins Inc. (NYSE: CMI) was released for Jun, 2022. According to the Specialty Industrial Machinery Company, earnings per share came in at $4.94, beating analysts’ expectations of $4.35 by 0.59. This compares to $3.74 EPS in the same period last year. The net profit margin was 7.30% and return on equity was 22.50% for CMI. The company reported revenue of $7.33 billion for the quarter, compared to $5.97 billion a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 22.87 percent. For the current quarter, analysts expect CMI to generate $6.8B in revenue.

Moreover, the firm recently paid out its quarterly dividend on 12/01/2022. Investors who held shares on 11/18/2022 were paid a $1.57 dividend. On an annualized basis, this represents a $6.28 dividend and a 2.61% percent yield. There was an ex-dividend date of 11/17/2022 for this dividend. In terms of dividend payout ratio, CMI is presently at 33.10%.

Cummins Inc.(CMI) 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 New Power. 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 new parts and services, as well as remanufactured parts and engines. It also provides power generation systems, high-horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. Additionally, it offers filtration, aftertreatment, controls systems, air handling systems, automated transmissions, electric power generation systems, and batteries. The company sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.