Zacks Investment Research upgraded shares of Cummins Inc. (NYSE:CMI) from a hold rating to a buy rating in a research report sent to investors on Thursday morning. The brokerage currently has $187.00 target price on the stock.
According to Zacks, “Zacks Consensus Estimate for Cummins’ quarterly earnings has been going up of late. The company 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. The company is also developing a Class 7 heavy-duty electric truck having a 140 kWh battery pack, to cater bus and commercial truck operators. Moreover, 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.”
Other analysts also recently issued research reports about the company. Stifel Nicolaus lifted their price target on Cummins from $160.00 to $168.00 and gave the company a hold rating in a research report on Wednesday, August 2nd. Royal Bank Of Canada restated a hold rating and issued a $166.00 target price on shares of Cummins in a research report on Wednesday, July 12th. Deutsche Bank AG dropped their target price on Cummins from $155.00 to $147.00 and set a sell rating for the company in a research report on Wednesday, August 2nd. Piper Jaffray Companies restated a hold rating and issued a $161.00 target price on shares of Cummins in a research report on Wednesday, July 12th. Finally, Seaport Global Securities restated a neutral rating on shares of Cummins in a research report on Tuesday, July 4th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $161.21.
Cummins (NYSE:CMI) opened at 167.98 on Thursday. The stock has a 50 day moving average price of $158.40 and a 200 day moving average price of $157.01. The firm has a market cap of $28.05 billion, a P/E ratio of 18.99 and a beta of 1.10. Cummins has a 1-year low of $119.41 and a 1-year high of $170.68.
Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 1st. The company reported $2.53 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $2.58 by ($0.05). The business had revenue of $5.08 billion for the quarter, compared to the consensus estimate of $4.80 billion. Cummins had a net margin of 8.10% and a return on equity of 20.67%. The business’s revenue was up 12.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.40 EPS. On average, analysts anticipate that Cummins will post $7.98 EPS for the current year.
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The business also recently declared a quarterly dividend, which was paid on Friday, September 1st. Shareholders of record on Friday, August 18th were paid a $1.08 dividend. 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 yield of 2.57%. The ex-dividend date was Wednesday, August 16th. Cummins’s payout ratio is 48.76%.
In other Cummins news, COO Richard Joseph Freeland sold 22,550 shares of Cummins 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 transaction, the chief operating officer now directly owns 14,131 shares of the company’s stock, valued at approximately $2,331,615. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Pat Ward sold 5,000 shares of Cummins stock in a transaction that occurred on Tuesday, July 25th. The stock was sold at an average price of $169.00, for a total value of $845,000.00. Following the completion of the transaction, the chief financial officer now directly owns 245 shares in the company, valued at $41,405. The disclosure for this sale can be found here. Insiders sold a total of 44,183 shares of company stock worth $7,320,858 over the last ninety days. Insiders own 0.62% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Johanson Financial Advisors Inc. increased its stake 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 period. Good Life Advisors LLC increased its stake 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 period. Northwest Quadrant Wealth Management LLC increased its stake 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 period. Bessemer Group Inc. increased its stake 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 period. Finally, Alambic Investment Management L.P. increased its stake 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 period. 80.38% of the stock is currently owned by hedge funds and other institutional investors.
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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