Cummins Inc. (CMI) Downgraded by Zacks Investment Research to Hold

Cummins Inc. (NYSE:CMI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, August 30th.

According to Zacks, “Cummins earnings missed the Zacks Consensus Estimate, whereas revenues beat the same in second-quarter 2017. The company expects to witness a growing trend in its truck and construction products’ demand, along with growth in global mining customers, which will have a positive impact on its sales figure. Cummins has also provided an improved outlook for fiscal 2017. The company is also poised to benefit from its business expansions in China and acquisitions and partnerships in North America. Moreover, its shares have outperformed against the industry, year to date. However, challenging market conditions, currency fluctuations in comparison to the U.S. dollar and high warranty costs are few concerns for the company. Moreover, its dependence for parts on a single supplier might also lead to manufacturing problems.”

Other analysts have also recently issued research reports about the stock. Stifel Nicolaus lifted their price target on shares of Cummins from $160.00 to $168.00 and gave the company a “hold” rating in a report on Wednesday, August 2nd. Royal Bank Of Canada restated a “hold” rating and set a $166.00 target price on shares of Cummins in a report on Wednesday, July 12th. Deutsche Bank AG dropped their target price on shares of Cummins from $155.00 to $147.00 and set a “sell” rating on the stock in a report on Wednesday, August 2nd. Jefferies Group LLC restated a “hold” rating and set a $160.00 target price (up previously from $150.00) on shares of Cummins in a report on Tuesday, May 2nd. Finally, Piper Jaffray Companies reaffirmed a “hold” rating and issued a $161.00 price target on shares of Cummins in a research report on Wednesday, July 12th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and nine have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $161.15.

Shares of Cummins (CMI) traded down 0.87% during mid-day trading on Wednesday, reaching $165.23. 2,322,073 shares of the company’s stock traded hands. Cummins has a 12 month low of $119.04 and a 12 month high of $170.68. The stock has a market cap of $27.59 billion, a PE ratio of 18.68 and a beta of 1.10. The firm has a 50 day moving average price of $158.42 and a 200-day moving average price of $156.70.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, August 1st. The company reported $2.53 earnings per share for the quarter, missing the consensus estimate of $2.58 by ($0.05). The company had revenue of $5.08 billion during the quarter, compared to the consensus estimate of $4.80 billion. Cummins had a net margin of 8.10% and a return on equity of 20.67%. The business’s revenue was up 12.1% on a year-over-year basis. During the same quarter last year, the firm earned $2.40 EPS. On average, analysts predict that Cummins will post $7.98 earnings per share for the current fiscal year.

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In other news, Director Franklin R. Changdiaz sold 1,633 shares of the company’s stock in a transaction that occurred on Wednesday, August 9th. The stock was sold at an average price of $159.27, for a total transaction of $260,087.91. Following the sale, the director now directly owns 5,814 shares of the company’s stock, valued at approximately $925,995.78. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Pat Ward sold 14,050 shares of the company’s stock in a transaction that occurred on Monday, June 19th. The stock was sold at an average price of $163.95, for a total value of $2,303,497.50. Following the sale, the chief financial officer now directly owns 13,395 shares in the company, valued at $2,196,110.25. The disclosure for this sale can be found here. Insiders sold a total of 58,233 shares of company stock valued at $9,624,355 over the last 90 days. 0.62% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently bought and sold shares of CMI. Carroll Financial Associates Inc. boosted its position in Cummins by 13.4% during the second quarter. Carroll Financial Associates Inc. now owns 702 shares of the company’s stock valued at $113,000 after purchasing an additional 83 shares in the last quarter. First Manhattan Co. boosted its position in Cummins by 4.2% during the first quarter. First Manhattan Co. now owns 997 shares of the company’s stock valued at $127,000 after purchasing an additional 40 shares in the last quarter. Captrust Financial Advisors bought a new stake in Cummins during the second quarter valued at about $137,000. First Interstate Bank boosted its position in Cummins by 26.3% during the first quarter. First Interstate Bank now owns 931 shares of the company’s stock valued at $141,000 after purchasing an additional 194 shares in the last quarter. Finally, Acrospire Investment Management LLC bought a new stake in Cummins during the second quarter valued at about $146,000. 80.43% of the stock is currently owned by institutional investors and hedge funds.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company’s segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.

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