Cummins Inc. (CMI) Cut to “Hold” at Zacks Investment Research
Cummins Inc. (NYSE:CMI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Cummins 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. 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. However, challenging market conditions, currency fluctuations in comparison to the U.S. dollar and high warranty costs are few concerns for Cummins. Moreover, its dependence for parts from a single supplier might also lead to manufacturing problems.”
A number of other research analysts have also recently commented on the stock. ValuEngine upgraded shares of Cummins from a “hold” rating to a “buy” rating in a report on Friday, June 2nd. Stifel Nicolaus upped their price target on shares of Cummins from $155.00 to $160.00 and gave the stock a “hold” rating in a report on Thursday, June 15th. Goldman Sachs Group, Inc. (The) cut shares of Cummins from a “conviction-buy” rating to a “buy” rating and set a $192.00 price target on the stock. in a report on Monday, August 7th. Deutsche Bank AG upped their price target on shares of Cummins from $139.00 to $142.00 and gave the stock a “sell” rating in a report on Tuesday, July 4th. Finally, Royal Bank Of Canada restated a “hold” rating and issued a $166.00 price target on shares of Cummins in a report on Monday, June 5th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have given a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $160.58.
Shares of Cummins (CMI) traded up 0.52% during midday trading on Wednesday, reaching $166.37. 309,918 shares of the company’s stock traded hands. Cummins has a one year low of $116.87 and a one year high of $170.68. The company has a 50-day moving average of $158.48 and a 200-day moving average of $156.33. The company has a market capitalization of $27.78 billion, a price-to-earnings ratio of 18.81 and a beta of 1.10.
Cummins (NYSE:CMI) last posted its quarterly 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%. The company’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.40 earnings per share. Equities research analysts anticipate that Cummins will post $7.98 EPS for the current year.
In other Cummins news, insider Tony Satterthwaite sold 4,000 shares of the stock in a transaction dated Thursday, July 6th. The shares were sold at an average price of $164.50, for a total transaction of $658,000.00. Following the completion of the sale, the insider now directly owns 41,902 shares of the company’s stock, valued at $6,892,879. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Pat Ward sold 14,050 shares of the stock in a transaction dated Monday, June 19th. The shares were sold at an average price of $163.95, for a total transaction of $2,303,497.50. Following the sale, the chief financial officer now directly owns 13,395 shares of the company’s stock, valued at $2,196,110.25. The disclosure for this sale can be found here. Over the last three months, insiders have sold 58,233 shares of company stock valued at $9,624,355. Insiders own 0.62% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the business. Johanson Financial Advisors Inc. lifted its position in shares of Cummins by 0.4% during the second quarter. Johanson Financial Advisors Inc. now owns 1,843 shares of the company’s stock valued at $303,000 after buying an additional 7 shares during the last quarter. Good Life Advisors LLC lifted its position in shares of Cummins by 0.6% during the second quarter. Good Life Advisors LLC now owns 1,481 shares of the company’s stock valued at $243,000 after buying an additional 9 shares during the last quarter. Northwest Quadrant Wealth Management LLC lifted its position in shares of Cummins by 0.5% during the second quarter. Northwest Quadrant Wealth Management LLC now owns 2,251 shares of the company’s stock valued at $360,000 after buying an additional 11 shares during the last quarter. Bessemer Group Inc. lifted its position in shares of Cummins by 1.1% during the second quarter. Bessemer Group Inc. now owns 1,148 shares of the company’s stock valued at $187,000 after buying an additional 12 shares during the last quarter. Finally, Alambic Investment Management L.P. lifted its position in shares of Cummins by 0.7% during the first quarter. Alambic Investment Management L.P. now owns 2,416 shares of the company’s stock valued at $365,000 after buying an additional 16 shares during the last quarter. 80.43% of the stock is 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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