Cummins (NYSE:CMI) Shares Cross Below 50 Day Moving Average – Time to Sell?

Cummins Inc. (NYSE:CMI)’s share price passed below its 50 day moving average during trading on Wednesday . The stock has a 50 day moving average of $358.36 and traded as low as $347.41. Cummins shares last traded at $348.60, with a volume of 318,008 shares traded.

Wall Street Analysts Forecast Growth

CMI has been the subject of a number of research analyst reports. Robert W. Baird raised their price target on shares of Cummins from $330.00 to $372.00 and gave the stock a “neutral” rating in a report on Wednesday, November 6th. The Goldman Sachs Group raised their target price on shares of Cummins from $324.00 to $370.00 and gave the stock a “neutral” rating in a report on Wednesday, November 6th. Vertical Research downgraded Cummins from a “buy” rating to a “hold” rating and set a $350.00 price target on the stock. in a research report on Wednesday, November 6th. StockNews.com raised Cummins from a “buy” rating to a “strong-buy” rating in a report on Wednesday, November 6th. Finally, Truist Financial raised their target price on Cummins from $369.00 to $424.00 and gave the stock a “hold” rating in a report on Thursday, December 19th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $356.92.

Cummins Stock Up 1.9 %

The business has a fifty day moving average of $358.67 and a 200 day moving average of $321.04. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.32 and a quick ratio of 0.79. The stock has a market capitalization of $48.61 billion, a price-to-earnings ratio of 23.40, a PEG ratio of 1.80 and a beta of 0.99.

Cummins (NYSE:CMI) last announced its earnings results on Tuesday, November 5th. The company reported $5.86 earnings per share for the quarter, topping the consensus estimate of $4.89 by $0.97. Cummins had a net margin of 6.13% and a return on equity of 26.86%. The company had revenue of $8.46 billion during the quarter, compared to analyst estimates of $8.29 billion. During the same quarter last year, the firm posted $4.73 earnings per share. Cummins’s revenue was up .3% compared to the same quarter last year. As a group, equities analysts predict that Cummins Inc. will post 20.75 earnings per share for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 5th. Stockholders of record on Friday, November 22nd were given a dividend of $1.82 per share. The ex-dividend date of this dividend was Friday, November 22nd. This represents a $7.28 annualized dividend and a dividend yield of 2.05%. Cummins’s dividend payout ratio is presently 48.08%.

Insider Buying and Selling

In related news, VP Sharon R. Barner sold 2,001 shares of the company’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $358.43, for a total transaction of $717,218.43. Following the sale, the vice president now directly owns 20,803 shares in the company, valued at approximately $7,456,419.29. This represents a 8.77 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold a total of 6,489 shares of company stock valued at $2,357,531 in the last ninety days. Company insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Prospera Private Wealth LLC acquired a new position in Cummins in the third quarter valued at $32,000. Kathleen S. Wright Associates Inc. purchased a new position in Cummins during the 3rd quarter worth approximately $34,000. nVerses Capital LLC acquired a new position in Cummins during the second quarter worth approximately $55,000. Ashton Thomas Securities LLC purchased a new stake in Cummins in the third quarter valued at approximately $55,000. Finally, Itau Unibanco Holding S.A. acquired a new stake in shares of Cummins in the second quarter valued at approximately $67,000. Hedge funds and other 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.