6 analysts have expressed a variety of opinions on Cummins (NYSE:CMI) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 0 | 4 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 3 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $308.5, with a high estimate of $320.00 and a low estimate of $292.00. Marking an increase of 5.51%, the current average surpasses the previous average price target of $292.40.
Decoding Analyst Ratings: A Detailed Look
The perception of Cummins by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Kyle Menges | Citigroup | Announces | Buy | $320.00 | - |
| Jamie Cook | Truist Securities | Maintains | Hold | $319.00 | $319.00 |
| Matt Elkott | TD Cowen | Raises | Buy | $292.00 | $272.00 |
| Jamie Cook | Truist Securities | Raises | Hold | $319.00 | $303.00 |
| David Leiker | Baird | Lowers | Neutral | $295.00 | $298.00 |
| Jerry Revich | Goldman Sachs | Raises | Neutral | $306.00 | $270.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cummins. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cummins compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Cummins's stock. This analysis reveals shifts in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cummins's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Cummins analyst ratings.
Discovering Cummins: A Closer Look
Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway machinery, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.
Cummins: Delving into Financials
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Negative Revenue Trend: Examining Cummins's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -0.59% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Cummins's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 23.72%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Cummins's ROE stands out, surpassing industry averages. With an impressive ROE of 22.25%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 6.24%, the company showcases effective utilization of assets.
Debt Management: Cummins's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.8.
How Are Analyst Ratings Determined?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.