Zacks Investment Research upgraded shares of Cummins Inc. (NYSE:CMI) from a hold rating to a buy rating in a report issued on Thursday. The brokerage currently has $187.00 target price on the stock.
According to Zacks, “Zacks Consensus Estimate for Cummins’ quarterly earnings has been going up of late. 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. The company is also developing a Class 7 heavy-duty electric truck having a 140 kWh battery pack, to cater bus and commercial truck operators. Moreover, it 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. Also, its shares have outperformed against the industry, year to date.”
CMI has been the topic of several other reports. Deutsche Bank AG boosted their price objective on shares of Cummins from $139.00 to $142.00 and gave the company a sell rating in a research note on Tuesday, July 4th. ValuEngine cut shares of Cummins from a buy rating to a hold rating in a research note on Tuesday, August 1st. Goldman Sachs Group, Inc. (The) cut shares of Cummins from a conviction-buy rating to a buy rating and set a $192.00 price objective on the stock. in a research note on Monday, August 7th. Piper Jaffray Companies reissued a hold rating and issued a $159.00 price objective on shares of Cummins in a research note on Thursday, August 3rd. Finally, Jefferies Group LLC reissued a hold rating and issued a $165.00 price objective (up from $160.00) on shares of Cummins in a research note on Wednesday, August 2nd. One analyst has rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $161.21.
Shares of Cummins (CMI) opened at 167.98 on Thursday. The company’s 50-day moving average is $158.40 and its 200-day moving average is $157.01. Cummins has a one year low of $119.41 and a one year high of $170.68. The stock has a market capitalization of $28.05 billion, a P/E ratio of 18.99 and a beta of 1.10.
Cummins (NYSE:CMI) last announced its quarterly earnings data on Tuesday, August 1st. The company reported $2.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.58 by ($0.05). The firm had revenue of $5.08 billion during the quarter, compared to analyst estimates of $4.80 billion. Cummins had a net margin of 8.10% and a return on equity of 20.67%. The business’s quarterly revenue was up 12.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.40 earnings per share. On average, equities research analysts anticipate that Cummins will post $7.98 earnings per share for the current year.
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The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 1st. Investors of record on Friday, August 18th were given a $1.08 dividend. The ex-dividend date of this dividend was Wednesday, August 16th. This is a positive change from Cummins’s previous quarterly dividend of $1.03. This represents a $4.32 annualized dividend and a dividend yield of 2.57%. Cummins’s payout ratio is currently 48.76%.
In related news, insider Tony Satterthwaite sold 4,000 shares of the business’s stock in a transaction dated Thursday, July 6th. The shares were sold at an average price of $164.50, for a total value of $658,000.00. Following the sale, the insider now directly owns 41,902 shares in the company, valued at approximately $6,892,879. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, COO Richard Joseph Freeland sold 22,550 shares of the business’s stock in a transaction dated Thursday, July 6th. The stock was sold at an average price of $165.00, for a total transaction of $3,720,750.00. Following the completion of the sale, the chief operating officer now owns 14,131 shares in the company, valued at $2,331,615. The disclosure for this sale can be found here. Insiders sold a total of 44,183 shares of company stock worth $7,320,858 over the last quarter. Insiders own 0.62% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp raised its stake in Cummins by 39.0% in the 1st quarter. Bank of New York Mellon Corp now owns 2,006,014 shares of the company’s stock valued at $303,309,000 after purchasing an additional 563,279 shares during the last quarter. Comerica Bank raised its stake in Cummins by 0.5% in the 1st quarter. Comerica Bank now owns 51,234 shares of the company’s stock valued at $7,739,000 after purchasing an additional 275 shares during the last quarter. Trust Co. of Vermont raised its stake in Cummins by 6.1% in the 1st quarter. Trust Co. of Vermont now owns 2,870 shares of the company’s stock valued at $434,000 after purchasing an additional 165 shares during the last quarter. Xact Kapitalforvaltning AB raised its stake in Cummins by 10.1% in the 1st quarter. Xact Kapitalforvaltning AB now owns 13,907 shares of the company’s stock valued at $2,103,000 after purchasing an additional 1,272 shares during the last quarter. Finally, Pictet Asset Management Ltd. raised its stake in Cummins by 19.0% in the 1st quarter. Pictet Asset Management Ltd. now owns 174,985 shares of the company’s stock valued at $26,457,000 after purchasing an additional 28,000 shares during the last quarter. Institutional investors and hedge funds own 80.38% of the company’s stock.
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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