ValuEngine Upgrades Cummins (CMI) to “Sell”
Cummins (NYSE:CMI) was upgraded by equities researchers at ValuEngine from a “strong sell” rating to a “sell” rating in a research note issued to investors on Thursday.
Other analysts also recently issued research reports about the stock. Stifel Nicolaus increased their target price on shares of Cummins from $160.00 to $172.00 and gave the company a “buy” rating in a research report on Wednesday, August 1st. Piper Jaffray Companies raised shares of Cummins from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $143.00 to $188.00 in a research report on Thursday, October 4th. Zacks Investment Research downgraded shares of Cummins from a “buy” rating to a “hold” rating in a research report on Monday, August 27th. Oppenheimer reduced their price objective on shares of Cummins from $168.00 to $192.00 and set an “outperform” rating for the company in a research report on Monday, July 23rd. Finally, JPMorgan Chase & Co. raised shares of Cummins from an “underweight” rating to a “neutral” rating and raised their price objective for the stock from $137.00 to $147.00 in a research report on Wednesday, October 31st. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and eight have assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $163.30.
NYSE:CMI opened at $143.07 on Thursday. The company has a market cap of $23.56 billion, a price-to-earnings ratio of 13.47, a PEG ratio of 0.80 and a beta of 1.16. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.54 and a quick ratio of 0.94. Cummins has a fifty-two week low of $124.72 and a fifty-two week high of $194.18.
Cummins declared that its Board of Directors has initiated a share repurchase program on Tuesday, October 9th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 8.3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.
In related news, CFO Pat Ward sold 4,503 shares of the stock in a transaction on Wednesday, October 3rd. The stock was sold at an average price of $148.93, for a total value of $670,631.79. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Tony Satterthwaite sold 830 shares of the stock in a transaction on Monday, November 5th. The stock was sold at an average price of $141.61, for a total value of $117,536.30. Following the completion of the transaction, the insider now owns 40,371 shares in the company, valued at $5,716,937.31. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,495 shares of company stock worth $3,974,777. 0.62% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently modified their holdings of the stock. Boston Partners lifted its holdings in shares of Cummins by 45.4% in the 2nd quarter. Boston Partners now owns 4,918,989 shares of the company’s stock worth $654,225,000 after purchasing an additional 1,534,792 shares in the last quarter. LSV Asset Management lifted its stake in Cummins by 79.7% during the 3rd quarter. LSV Asset Management now owns 3,234,527 shares of the company’s stock valued at $472,467,000 after acquiring an additional 1,434,282 shares in the last quarter. American Century Companies Inc. lifted its stake in Cummins by 12.1% during the 3rd quarter. American Century Companies Inc. now owns 2,518,910 shares of the company’s stock valued at $367,937,000 after acquiring an additional 271,489 shares in the last quarter. FMR LLC lifted its stake in Cummins by 11.6% during the 2nd quarter. FMR LLC now owns 2,385,506 shares of the company’s stock valued at $317,272,000 after acquiring an additional 248,721 shares in the last quarter. Finally, Wells Fargo & Company MN lifted its stake in Cummins by 33.4% during the 3rd quarter. Wells Fargo & Company MN now owns 2,330,443 shares of the company’s stock valued at $340,407,000 after acquiring an additional 583,376 shares in the last quarter. Institutional investors own 79.79% of the company’s stock.
Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.
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