Cummins Inc.

(New York Stock Exchange)
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Somewhat Bullish +35

Cummins Inc. (NYSE:CMI) Stock Now Rated "Moderate Buy" by Sell-Side Analysts - MarketBeat

Analyst upgrade Dividend Earnings report AI-generated analysis

πŸ“Š Analysts rate Cummins Inc. (NYSE:CMI) as a 'Moderate Buy' with an average 12-month price target of $703.18, well above the current trading price of $535.42.

πŸ’° The company reported quarterly revenue of $9.46 billion, up 9.4% year over year, which exceeded analyst expectations.

πŸ“‰ Earnings per share of $6.73 missed the consensus forecast of $7.21 by $0.48 in the most recent quarter.

πŸ’΅ Cummins declared a quarterly dividend of $2.20 per share, annualizing to $8.80 with a yield of 1.6% and a payout ratio of 44.97%.

🏦 Institutional investors own 83.46% of outstanding shares, indicating strong confidence from major asset managers.

πŸ“ˆ Citigroup lowered its price target to $630 but maintained a 'buy' rating on the stock in late October.

πŸ“‰ Barclays cut its price target to $675 while assigning an 'overweight' rating to Cummins shares.

πŸ”‹ The company operates with a healthy debt-to-equity ratio of 0.48 and a current ratio of 1.73.

πŸ“ˆ VP Earl Newsome sold 698 shares worth approximately $399,409 in late August, reducing his personal ownership stake.

πŸ“‰ Robeco Institutional Asset Management increased its holdings by 6.4% in the third quarter to over 1 million shares.

Bullish Signals
  • Analysts maintain an average 'Moderate Buy' rating with a consensus price target of $703.18, implying significant upside potential from current levels.
  • Revenue grew 9.4% year over year to $9.46 billion, surpassing analyst estimates and demonstrating strong top-line growth.
  • The company declared a quarterly dividend of $2.20 per share, providing a 1.6% yield with a sustainable 44.97% payout ratio.
  • Institutional ownership stands at 83.46%, reflecting strong confidence from major asset managers and hedge funds.
  • Robeco Institutional Asset Management boosted its stake by 6.4% in the third quarter, adding over 62,000 shares to its portfolio.
  • Citigroup maintained a 'buy' rating despite lowering its price target, signaling continued confidence in the company's long-term prospects.
  • Cummins reported a net margin of 7.82% and a return on equity of 25.29%, indicating efficient capital allocation and profitability.
Risk Factors
  • Earnings per share of $6.73 missed the analyst consensus forecast of $7.21 by $0.48 in the most recent quarter.
  • Barclays reduced its price target from $760 to $675, citing a more cautious outlook on the stock's valuation.
Full Analysis
Cummins Inc. (NYSE:CMI) received an average analyst rating of 'Moderate Buy' from eighteen sell-side analysts, with thirteen recommending a buy and five holding. The consensus 12-month price target stands at $703.18, significantly above the current share price of $535.42. Recent broker actions include Citigroup lowering its target to $630 while maintaining a 'buy' rating, and Barclays cutting its target to $675 with an 'overweight' rating. In its latest quarterly report released on August 4th, Cummins reported revenue of $9.46 billion, representing a 9.4% year-over-year increase that beat analyst estimates. However, earnings per share of $6.73 fell short of the consensus forecast of $7.21. The company maintains a strong balance sheet with a debt-to-equity ratio of 0.48 and reported a net margin of 7.82% alongside a return on equity of 25.29%. The company declared a quarterly dividend of $2.20 per share, payable on December 3rd to shareholders of record on November 20th, resulting in an annualized yield of 1.6%. Institutional ownership remains high at 83.46%, with notable increases in stakes from Robeco Institutional Asset Management and Diversify Advisory Services during the third quarter, while VP Earl Newsome sold a small portion of his holdings.