Cummins stock soars to all-time high of $370.35

Published 22-11-2024, 12:04 am
CMI
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Cummins Inc . (NYSE:CMI) stock has reached an unprecedented peak, marking an all-time high of $370.35. This milestone reflects a significant surge in the company's market value, underlining a robust period of growth for the engine manufacturer. Over the past year, Cummins has witnessed an impressive 64.83% increase in its stock price, a testament to the company's strong performance and investor confidence. The achievement of this all-time high represents a key moment for Cummins, as it continues to expand its global footprint and invest in innovative technologies within the power sector.

In other recent news, Cummins Inc. has been the subject of increased confidence from Evercore ISI, which raised its stock rating from In Line to Outperform and significantly increased the price target to $408. This upgrade reflects the firm's optimistic outlook on Cummins, particularly with the forthcoming launch of its new 2027 EPA-compliant engine. Evercore ISI anticipates that the early launch of this engine will fuel growth for the company as customers are expected to advance purchases ahead of stricter emission standards.

Cummins' Q3 2024 financial performance also garnered attention, with steady sales of $8.5 billion and an increase in EBITDA to $1.4 billion, marking a margin rise from 14.6% to 16.4%. This strong performance led Baird to increase its stock price target for Cummins to $372.00, while maintaining a Neutral rating. Cummins' Power Systems division played a significant role in this performance, exceeding forecasts due to exceptional operational execution.

In addition to these financial developments, Cummins has launched full production of the X15N natural gas engine and inaugurated an electrolyzer manufacturing plant in Spain. Despite a decline in North American sales, the company's revenue guidance for 2024 remains unchanged with an improved EBITDA guidance to around 15.5%. These recent developments underscore Cummins' commitment to sustainable solutions and financial stability.

InvestingPro Insights

Cummins Inc.'s recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a Price % of 52 Week High at 99.85%. This corroborates the article's mention of Cummins reaching an all-time high of $370.35.

InvestingPro data shows that Cummins has delivered a strong 1 Year Price Total (EPA:TTEF) Return of 65.49%, closely matching the 64.83% increase mentioned in the article. This impressive performance is further supported by a YTD Price Total Return of 53.44%, indicating sustained growth throughout the current year.

Two relevant InvestingPro Tips highlight Cummins' financial strength and market position. Firstly, Cummins "has raised its dividend for 19 consecutive years," demonstrating a consistent commitment to shareholder returns. Secondly, the company is recognized as a "prominent player in the Machinery industry," which aligns with its status as a leading engine manufacturer.

For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips about Cummins, providing deeper insights into the company's financial health and market prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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