Cummins (NYSE:CMI) Shares Gap Down – Here’s What Happened

Cummins Inc. (NYSE:CMI)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $330.71, but opened at $318.55. Cummins shares last traded at $320.61, with a volume of 196,483 shares trading hands.

Wall Street Analysts Forecast Growth

CMI has been the topic of several analyst reports. Evercore ISI boosted their price target on shares of Cummins from $408.00 to $451.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 19th. Barclays increased their price target on Cummins from $310.00 to $381.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 5th. Jefferies Financial Group boosted their price target on Cummins from $410.00 to $435.00 and gave the stock a “buy” rating in a research report on Friday, December 6th. StockNews.com downgraded Cummins from a “strong-buy” rating to a “buy” rating in a report on Thursday, February 6th. Finally, JPMorgan Chase & Co. raised shares of Cummins from an “underweight” rating to a “neutral” rating and upped their price target for the stock from $355.00 to $420.00 in a research report on Monday, December 9th. Eight investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $386.67.

Cummins Stock Down 3.4 %

The company has a market cap of $43.90 billion, a price-to-earnings ratio of 11.33, a P/E/G ratio of 2.19 and a beta of 1.01. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.31 and a quick ratio of 0.80. The firm has a 50-day moving average price of $360.73 and a 200 day moving average price of $346.75.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, February 4th. The company reported $5.16 EPS for the quarter, beating analysts’ consensus estimates of $4.70 by $0.46. The firm had revenue of $8.45 billion for the quarter, compared to analyst estimates of $8.06 billion. Cummins had a return on equity of 27.12% and a net margin of 11.57%. The company’s revenue for the quarter was down 1.1% on a year-over-year basis. During the same period in the prior year, the firm posted $4.14 EPS. Sell-side analysts predict that Cummins Inc. will post 22.54 EPS for the current year.

Cummins Announces Dividend

The business 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 2.28%. The ex-dividend date was Friday, February 21st. Cummins’s dividend payout ratio (DPR) is currently 25.84%.

Hedge Funds Weigh In On Cummins

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Siemens Fonds Invest GmbH lifted its holdings in shares of Cummins by 9.9% in the fourth quarter. Siemens Fonds Invest GmbH now owns 4,433 shares of the company’s stock worth $1,545,000 after acquiring an additional 398 shares during the last quarter. Cim LLC acquired a new position in shares of Cummins during the fourth quarter worth $1,532,000. Park Square Financial Group LLC bought a new position in shares of Cummins in the 4th quarter valued at $45,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Cummins during the 4th quarter valued at $45,015,000. Finally, Capital A Wealth Management LLC bought a new stake in Cummins during the 4th quarter worth $32,000. 83.46% of the stock is owned by institutional investors and hedge funds.

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.