Cummins Inc. (CMI) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Cummins Inc. (NYSE:CMI) from a hold rating to a buy rating in a research note released on Friday morning. The brokerage currently has $186.00 target price on the stock.
According to Zacks, “Zacks Consensus Estimate for Cummins’ quarterly earnings has been going up of late. The company is developing a Class 7 heavy-duty electric truck having a 140 kWh battery pack, to cater bus and commercial truck operators. This new electric truck will help Cummins to witness a growing trend in the demand of its truck and construction products. It is also poised to benefit from its business expansions in China and acquisitions and partnerships in North America. Also, year to date, its shares have outperformed against the industry it belongs to.”
Other equities research analysts also recently issued research reports about the company. Goldman Sachs Group, Inc. (The) downgraded Cummins from a conviction-buy rating to a buy rating and set a $192.00 target price for the company. in a report on Monday, August 7th. ValuEngine raised Cummins from a hold rating to a buy rating in a report on Friday, June 2nd. Buckingham Research started coverage on Cummins in a report on Tuesday, September 5th. They set a buy rating and a $180.00 target price for the company. Stifel Nicolaus lifted their target price on Cummins from $155.00 to $160.00 and gave the stock a hold rating in a report on Thursday, June 15th. Finally, Royal Bank Of Canada reaffirmed a hold rating and set a $166.00 target price on shares of Cummins in a report on Monday, June 5th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have assigned a buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $161.15.
Shares of Cummins (NYSE CMI) opened at 166.94 on Friday. Cummins has a 52-week low of $119.04 and a 52-week high of $170.68. The stock’s 50 day moving average is $158.41 and its 200 day moving average is $156.90. The stock has a market cap of $27.88 billion, a price-to-earnings ratio of 18.87 and a beta of 1.10.
Cummins (NYSE:CMI) last released 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). Cummins had a return on equity of 20.67% and a net margin of 8.10%. The firm had revenue of $5.08 billion for the quarter, compared to analyst estimates of $4.80 billion. During the same period last year, the firm earned $2.40 EPS. The company’s revenue for the quarter was up 12.1% compared to the same quarter last year. On average, equities analysts predict that Cummins will post $7.98 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 1st. Stockholders of record on Friday, August 18th were given a $1.08 dividend. The ex-dividend date was Wednesday, August 16th. This is a boost from Cummins’s previous quarterly dividend of $1.03. This represents a $4.32 dividend on an annualized basis and a dividend yield of 2.59%. Cummins’s payout ratio is 48.76%.
In other news, COO Richard Joseph Freeland sold 22,550 shares of the business’s stock in a transaction that occurred on Thursday, July 6th. The stock was sold at an average price of $165.00, for a total value of $3,720,750.00. Following the completion of the sale, the chief operating officer now directly owns 14,131 shares in the company, valued at $2,331,615. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Franklin R. Changdiaz sold 1,633 shares of the business’s stock in a transaction that occurred on Wednesday, August 9th. The shares were sold at an average price of $159.27, for a total value of $260,087.91. Following the completion of the sale, the director now owns 5,814 shares of the company’s stock, valued at $925,995.78. The disclosure for this sale can be found here. Insiders sold 44,183 shares of company stock valued at $7,320,858 over the last 90 days. Company insiders own 0.62% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Carroll Financial Associates Inc. increased its position in shares of Cummins by 13.4% in the second quarter. Carroll Financial Associates Inc. now owns 702 shares of the company’s stock valued at $113,000 after buying an additional 83 shares in the last quarter. Captrust Financial Advisors purchased a new stake in shares of Cummins in the second quarter valued at approximately $137,000. First Interstate Bank increased its position in shares of Cummins by 26.3% in the first quarter. First Interstate Bank now owns 931 shares of the company’s stock valued at $141,000 after buying an additional 194 shares in the last quarter. Acrospire Investment Management LLC purchased a new stake in shares of Cummins in the second quarter valued at approximately $146,000. Finally, Harbour Capital Advisors LLC purchased a new stake in shares of Cummins in the first quarter valued at approximately $150,000. 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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