Cummins Stock Rises 0.63% to 52-Week High on Analyst Upgrades and Dividend Hike Daily Trading Volume Ranks 478th

Cummins Inc. (CMI) rose 0.63% on August 18, with a trading volume of $190 million, reflecting a 30.48% decline from the previous day’s volume and ranking 478th in market activity. The stock hit a 52-week high of $408.38, driven by analyst upgrades and a dividend increase. Goldman Sachs raised its price target to $431 from $410 and shifted to a "buy" rating, while Morgan Stanley and Barclays also adjusted their assessments to overweight or higher targets. The company announced a quarterly dividend hike to $2.00 per share, boosting its yield to 2.0% annually.

Institutional activity highlighted mixed investor sentiment. Dimensional Fund Advisors LP reduced its stake by 4.8% in Q1, whereas GAMMA Investing LLC and Vanguard Group significantly increased holdings. Insider transactions included a 38.67% reduction in shares by VP Luther E. Peters, while Director John H. Stone added to his position. Cummins’ Q2 earnings exceeded estimates, reporting $6.43 EPS against $5.21 expected, with $8.64 billion in revenue, though annual revenue declined 1.7%.

Analysts remain cautiously optimistic, with a consensus "Hold" rating and a $370.83 price target. Despite a 2.0% dividend yield and strong earnings, institutional ownership remains at 83.46%, and insider ownership stands at 0.41%. The stock’s beta of 1.02 and 19.12 P/E ratio indicate moderate volatility and valuation relative to peers.

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