Investors Buy Shares of Cummins Inc. (CMI) on Weakness

Traders purchased shares of Cummins Inc. (NYSE:CMI) on weakness during trading hours on Monday. $53.52 million flowed into the stock on the tick-up and $15.36 million flowed out of the stock on the tick-down, for a money net flow of $38.16 million into the stock. Of all stocks tracked, Cummins had the 17th highest net in-flow for the day. Cummins traded down ($0.37) for the day and closed at $171.74

A number of brokerages have recently weighed in on CMI. Deutsche Bank AG reissued a “sell” rating and issued a $159.00 price objective (up from $147.00) on shares of Cummins in a report on Monday. Wells Fargo & Company upped their target price on Cummins from $184.50 to $190.00 and gave the stock a “market perform” rating in a research note on Friday, October 6th. Zacks Investment Research downgraded Cummins from a “buy” rating to a “hold” rating in a research note on Tuesday, October 3rd. Piper Jaffray Companies restated a “hold” rating and issued a $159.00 target price on shares of Cummins in a research note on Tuesday, September 12th. Finally, Jefferies Group LLC restated a “hold” rating and issued a $165.00 target price on shares of Cummins in a research note on Thursday, September 7th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and six have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $164.52.

The company has a market cap of $28.88 billion, a PE ratio of 19.55 and a beta of 1.13. The company has a 50 day moving average price of $164.06 and a 200 day moving average price of $158.90.

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

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 1st. Shareholders of record on Friday, November 17th will be issued a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a yield of 2.50%. Cummins’s dividend payout ratio is presently 48.76%.

In other Cummins news, Director Franklin R. Changdiaz sold 1,633 shares of Cummins stock in a transaction that occurred on Wednesday, August 9th. The stock was sold at an average price of $159.27, for a total value of $260,087.91. Following the sale, the director now owns 5,814 shares of the company’s stock, valued at approximately $925,995.78. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jill E. Cook sold 7,000 shares of Cummins stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $165.86, for a total value of $1,161,020.00. Following the completion of the sale, the insider now directly owns 9,671 shares in the company, valued at approximately $1,604,032.06. The disclosure for this sale can be found here. Insiders sold a total of 17,633 shares of company stock worth $2,942,108 in the last ninety days. 0.62% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Fulton Bank N.A. boosted its holdings in Cummins by 35.6% in the 3rd quarter. Fulton Bank N.A. now owns 8,845 shares of the company’s stock valued at $1,486,000 after purchasing an additional 2,322 shares in the last quarter. Eqis Capital Management Inc. boosted its holdings in Cummins by 16.3% in the 3rd quarter. Eqis Capital Management Inc. now owns 27,337 shares of the company’s stock valued at $4,593,000 after purchasing an additional 3,836 shares in the last quarter. Navellier & Associates Inc boosted its holdings in Cummins by 3.4% in the 2nd quarter. Navellier & Associates Inc now owns 16,476 shares of the company’s stock valued at $2,673,000 after purchasing an additional 539 shares in the last quarter. USA Financial Portformulas Corp purchased a new stake in Cummins in the 2nd quarter valued at approximately $999,000. Finally, Toronto Dominion Bank boosted its holdings in Cummins by 25.3% in the 2nd quarter. Toronto Dominion Bank now owns 52,417 shares of the company’s stock valued at $8,502,000 after purchasing an additional 10,581 shares in the last quarter. 80.38% of the stock is currently owned by institutional investors. <

A number of brokerages have recently weighed in on CMI. Deutsche Bank AG reissued a “sell” rating and issued a $159.00 price objective (up from $147.00) on shares of Cummins in a report on Monday. Wells Fargo & Company upped their target price on Cummins from $184.50 to $190.00 and gave the stock a “market perform” rating in a research note on Friday, October 6th. Zacks Investment Research downgraded Cummins from a “buy” rating to a “hold” rating in a research note on Tuesday, October 3rd. Piper Jaffray Companies restated a “hold” rating and issued a $159.00 target price on shares of Cummins in a research note on Tuesday, September 12th. Finally, Jefferies Group LLC restated a “hold” rating and issued a $165.00 target price on shares of Cummins in a research note on Thursday, September 7th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and six have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $164.52.

The company has a market cap of $28.88 billion, a PE ratio of 19.55 and a beta of 1.13. The company has a 50 day moving average price of $164.06 and a 200 day moving average price of $158.90.

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

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 1st. Shareholders of record on Friday, November 17th will be issued a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a yield of 2.50%. Cummins’s dividend payout ratio is presently 48.76%.

In other Cummins news, Director Franklin R. Changdiaz sold 1,633 shares of Cummins stock in a transaction that occurred on Wednesday, August 9th. The stock was sold at an average price of $159.27, for a total value of $260,087.91. Following the sale, the director now owns 5,814 shares of the company’s stock, valued at approximately $925,995.78. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jill E. Cook sold 7,000 shares of Cummins stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $165.86, for a total value of $1,161,020.00. Following the completion of the sale, the insider now directly owns 9,671 shares in the company, valued at approximately $1,604,032.06. The disclosure for this sale can be found here. Insiders sold a total of 17,633 shares of company stock worth $2,942,108 in the last ninety days. 0.62% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Fulton Bank N.A. boosted its holdings in Cummins by 35.6% in the 3rd quarter. Fulton Bank N.A. now owns 8,845 shares of the company’s stock valued at $1,486,000 after purchasing an additional 2,322 shares in the last quarter. Eqis Capital Management Inc. boosted its holdings in Cummins by 16.3% in the 3rd quarter. Eqis Capital Management Inc. now owns 27,337 shares of the company’s stock valued at $4,593,000 after purchasing an additional 3,836 shares in the last quarter. Navellier & Associates Inc boosted its holdings in Cummins by 3.4% in the 2nd quarter. Navellier & Associates Inc now owns 16,476 shares of the company’s stock valued at $2,673,000 after purchasing an additional 539 shares in the last quarter. USA Financial Portformulas Corp purchased a new stake in Cummins in the 2nd quarter valued at approximately $999,000. Finally, Toronto Dominion Bank boosted its holdings in Cummins by 25.3% in the 2nd quarter. Toronto Dominion Bank now owns 52,417 shares of the company’s stock valued at $8,502,000 after purchasing an additional 10,581 shares in the last quarter. 80.38% of the stock is currently owned by institutional investors.

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About Cummins

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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