Traders Buy Shares of Cummins Inc. (CMI) on Weakness Following Analyst Downgrade
Investors bought shares of Cummins Inc. (NYSE:CMI) on weakness during trading hours on Thursday after Goldman Sachs Group, Inc. (The) downgraded the stock from a conviction-buy rating to a buy rating. $65.17 million flowed into the stock on the tick-up and $44.81 million flowed out of the stock on the tick-down, for a money net flow of $20.36 million into the stock. Of all companies tracked, Cummins had the 30th highest net in-flow for the day. Cummins traded down ($0.04) for the day and closed at $157.74
Several other research firms have also commented on CMI. Deutsche Bank AG restated a “sell” rating and set a $154.00 price target (up previously from $142.00) on shares of Cummins in a research report on Wednesday, May 3rd. Royal Bank Of Canada restated a “hold” rating and set a $166.00 price target on shares of Cummins in a research report on Monday, June 5th. ValuEngine upgraded shares of Cummins from a “hold” rating to a “buy” rating in a research report on Friday, June 2nd. Piper Jaffray Companies restated a “hold” rating and set a $159.00 price target on shares of Cummins in a research report on Thursday, August 3rd. Finally, Stifel Nicolaus raised their price target on shares of Cummins from $160.00 to $168.00 and gave the company a “hold” rating in a research report on Wednesday, August 2nd. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and seven have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $154.33.
In other Cummins news, Director Alexis M. Herman sold 1,300 shares of the stock in a transaction on Wednesday, May 10th. The shares were sold at an average price of $159.16, for a total transaction of $206,908.00. Following the transaction, the director now directly owns 29,656 shares of the company’s stock, valued at $4,720,048.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Anant Talaulicar sold 1,650 shares of the stock in a transaction on Tuesday, May 30th. The shares were sold at an average price of $157.50, for a total transaction of $259,875.00. Following the transaction, the vice president now directly owns 13,029 shares in the company, valued at $2,052,067.50. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 60,636 shares of company stock worth $10,000,575. Insiders own 0.62% of the company’s stock.
A number of institutional investors have recently bought and sold shares of CMI. Beese Fulmer Investment Management Inc. raised its stake in Cummins by 0.8% in the first quarter. Beese Fulmer Investment Management Inc. now owns 31,682 shares of the company’s stock worth $4,790,000 after buying an additional 244 shares in the last quarter. Pinnacle Bank purchased a new stake in Cummins during the first quarter worth $105,000. Winslow Evans & Crocker Inc. raised its stake in Cummins by 24.5% in the first quarter. Winslow Evans & Crocker Inc. now owns 11,810 shares of the company’s stock worth $1,785,000 after buying an additional 2,322 shares in the last quarter. Weybosset Research & Management LLC raised its stake in Cummins by 1.1% in the first quarter. Weybosset Research & Management LLC now owns 41,063 shares of the company’s stock worth $6,209,000 after buying an additional 445 shares in the last quarter. Finally, Gulf International Bank UK Ltd raised its stake in Cummins by 1.0% in the first quarter. Gulf International Bank UK Ltd now owns 51,801 shares of the company’s stock worth $7,832,000 after buying an additional 500 shares in the last quarter. 80.34% of the stock is currently owned by institutional investors and hedge funds.
The stock has a market capitalization of $26.69 billion, a P/E ratio of 18.06 and a beta of 1.09. The firm has a 50 day moving average price of $163.10 and a 200-day moving average price of $154.60.
Cummins (NYSE:CMI) last issued its earnings results on Tuesday, August 1st. The company reported $2.53 EPS for the quarter, missing the Zacks’ 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 return on equity of 20.67% and a net margin of 8.10%. Cummins’s revenue was up 12.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.40 earnings per share. Equities research analysts predict that Cummins Inc. will post $7.98 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 1st. Shareholders of record on Friday, August 18th will be paid a $1.08 dividend. This is an increase from Cummins’s previous quarterly dividend of $1.03. This represents a $4.32 dividend on an annualized basis and a yield of 2.70%. The ex-dividend date of this dividend is Wednesday, August 16th. Cummins’s dividend payout ratio is currently 46.28%.
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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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