Cummins (NYSE:CMI) Sets New 12-Month Low – Time to Sell?

Cummins Inc. (NYSE:CMI) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $259.16 and last traded at $269.02, with a volume of 5344 shares. The stock had previously closed at $277.62.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Citigroup lowered their price objective on Cummins from $430.00 to $360.00 and set a “buy” rating on the stock in a report on Monday, March 31st. Evercore ISI boosted their price objective on shares of Cummins from $408.00 to $451.00 and gave the stock an “outperform” rating in a report on Wednesday, February 19th. StockNews.com downgraded shares of Cummins from a “buy” rating to a “hold” rating in a research report on Tuesday, March 25th. Truist Financial upped their price target on Cummins from $424.00 to $425.00 and gave the stock a “hold” rating in a report on Thursday, January 16th. Finally, JPMorgan Chase & Co. cut their price target on Cummins from $420.00 to $375.00 and set a “neutral” rating for the company in a research note on Tuesday, March 18th. One analyst has rated the stock with a sell rating, nine have given a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $383.67.

Cummins Stock Performance

The company has a market cap of $37.19 billion, a PE ratio of 9.63, a P/E/G ratio of 2.19 and a beta of 1.07. The company has a quick ratio of 0.80, a current ratio of 1.31 and a debt-to-equity ratio of 0.42. The stock’s 50 day simple moving average is $345.89 and its two-hundred day simple moving average is $348.94.

Cummins (NYSE:CMI) last posted its earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share for the quarter, beating the consensus estimate of $4.70 by $0.46. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The business had revenue of $8.45 billion for the quarter, compared to analyst estimates of $8.06 billion. During the same quarter in the previous year, the business posted $4.14 EPS. The business’s quarterly revenue was down 1.1% on a year-over-year basis. As a group, research analysts anticipate that Cummins Inc. will post 22.54 earnings per share for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 6th. Investors of record on Friday, February 21st were paid a $1.82 dividend. This represents a $7.28 annualized dividend and a dividend yield of 2.70%. The ex-dividend date was Friday, February 21st. Cummins’s dividend payout ratio (DPR) is 25.84%.

Institutional Trading of Cummins

Hedge funds have recently made changes to their positions in the stock. Global Trust Asset Management LLC boosted its position in Cummins by 59.6% during the 4th quarter. Global Trust Asset Management LLC now owns 75 shares of the company’s stock worth $26,000 after acquiring an additional 28 shares during the period. BankPlus Trust Department acquired a new position in shares of Cummins during the fourth quarter valued at approximately $26,000. Compass Financial Services Inc bought a new stake in Cummins during the fourth quarter worth approximately $27,000. Meeder Asset Management Inc. lifted its position in Cummins by 208.0% in the fourth quarter. Meeder Asset Management Inc. now owns 77 shares of the company’s stock worth $27,000 after purchasing an additional 52 shares during the period. Finally, TCTC Holdings LLC acquired a new position in shares of Cummins during the 4th quarter valued at $28,000. Institutional investors own 83.46% of the company’s stock.

About Cummins

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.