Cummins Inc. (CMI) Upgraded to Buy by Goldman Sachs Group Inc.
Goldman Sachs Group Inc. upgraded shares of Cummins Inc. (NYSE:CMI) from a neutral rating to a buy rating in a research note released on Tuesday morning. Goldman Sachs Group Inc. currently has $162.00 price objective on the stock, up from their previous price objective of $134.00.
A number of other equities research analysts have also recently weighed in on CMI. Citigroup Inc. lifted their price target on shares of Cummins from $115.00 to $120.00 and gave the company a neutral rating in a research report on Wednesday, August 3rd. Jefferies Group lifted their price objective on shares of Cummins from $115.00 to $120.00 and gave the company a hold rating in a report on Thursday, September 1st. William Blair set a $110.00 price objective on shares of Cummins and gave the company a hold rating in a report on Thursday, September 8th. BMO Capital Markets restated a market perform rating and issued a $114.00 price objective on shares of Cummins in a report on Monday, September 12th. Finally, Standpoint Research cut shares of Cummins from a buy rating to a hold rating in a report on Thursday, July 14th. Four research analysts have rated the stock with a sell rating, fourteen have given a hold rating and six have given a buy rating to the company’s stock. Cummins currently has a consensus rating of Hold and a consensus price target of $114.89.
Cummins (NYSE:CMI) traded up 0.05% on Tuesday, hitting $127.92. 464,707 shares of the company’s stock were exchanged. The company’s 50-day moving average price is $123.29 and its 200-day moving average price is $117.66. The company has a market cap of $21.49 billion, a PE ratio of 17.52 and a beta of 1.46. Cummins has a 12-month low of $79.88 and a 12-month high of $131.04.
Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $2.40 earnings per share for the quarter, beating analysts’ consensus estimates of $2.15 by $0.25. Cummins had a net margin of 6.97% and a return on equity of 19.48%. The business earned $4.50 billion during the quarter, compared to analysts’ expectations of $4.50 billion. During the same period last year, the business earned $2.62 earnings per share. The business’s revenue for the quarter was down 9.7% on a year-over-year basis. Analysts forecast that Cummins will post $8.14 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 1st. Shareholders of record on Monday, November 21st will be given a dividend of $1.025 per share. This represents a $4.10 dividend on an annualized basis and a yield of 3.21%. This is an increase from Cummins’s previous quarterly dividend of $0.98. Cummins’s dividend payout ratio is presently 55.93%.
In other news, CFO Pat Ward sold 5,000 shares of the company’s stock in a transaction on Wednesday, July 27th. The shares were sold at an average price of $122.50, for a total transaction of $612,500.00. Following the transaction, the chief financial officer now directly owns 8,024 shares of the company’s stock, valued at approximately $982,940. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Thaddeus B. Ewald sold 820 shares of the company’s stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $126.95, for a total transaction of $104,099.00. The disclosure for this sale can be found here. Company insiders own 0.57% of the company’s stock.
Several institutional investors have recently bought and sold shares of CMI. Capital World Investors boosted its position in Cummins by 19.1% in the second quarter. Capital World Investors now owns 9,599,846 shares of the company’s stock worth $1,079,407,000 after buying an additional 1,540,865 shares during the period. Skandinaviska Enskilda Banken AB publ boosted its position in Cummins by 4,343.1% in the second quarter. Skandinaviska Enskilda Banken AB publ now owns 1,172,302 shares of the company’s stock worth $131,814,000 after buying an additional 1,145,917 shares during the period. AXA boosted its position in Cummins by 991.1% in the first quarter. AXA now owns 1,056,200 shares of the company’s stock worth $116,118,000 after buying an additional 959,400 shares during the period. Emerald Acquisition Ltd. bought a new position in Cummins during the second quarter worth $59,639,000. Finally, Bank of Montreal Can bought a new position in Cummins during the second quarter worth $53,030,000. 81.36% of the stock is currently owned by institutional investors and hedge funds.
Cummins Inc is a manufacturer of diesel engines. The Company operates through four segments: Engine, Distribution, Components and Power Generation. Its 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, agricultural and governmental equipment markets.
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