Cummins (NYSE:CMI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Cummins earnings and revenues topped the Zacks Consensus Estimate in the fourth-quarter. Both the metrics were higher than the year-ago figures. Moreover, the company provided a bullish outlook for fiscal 2018. It expects high profitability on the basis of higher sales and cost reduction initiatives in the current year. Cummins has also achieved its target of returning 50% of full-year operating cash flow to its shareholders in the form of share repurchases and dividends to boost their confidence in the company. It plans to achieve the same target in 2018 as well. However, high variable compensation costs and Selling, general and administrative expenses are hampering the company’s financials. Also, over a year, its shares have underperformed the industry it belongs to. “
Several other brokerages also recently weighed in on CMI. Seaport Global Securities reissued a “neutral” rating on shares of Cummins in a research report on Tuesday, January 16th. Stifel Nicolaus reissued a “hold” rating and set a $190.00 price target (up previously from $186.00) on shares of Cummins in a research report on Wednesday, November 1st. Citigroup raised their price target on shares of Cummins from $185.00 to $200.00 and gave the company a “neutral” rating in a research report on Monday, February 5th. BMO Capital Markets raised their price target on shares of Cummins from $185.00 to $190.00 and gave the company a “market perform” rating in a research report on Wednesday, November 8th. Finally, ValuEngine downgraded shares of Cummins from a “buy” rating to a “hold” rating in a research report on Saturday, November 25th. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating and six have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $188.18.
Shares of Cummins (CMI) traded up $0.54 on Wednesday, hitting $167.36. 640,756 shares of the company traded hands, compared to its average volume of 1,515,045. The company has a market capitalization of $27,437.15, a P/E ratio of 28.15, a P/E/G ratio of 1.16 and a beta of 1.14. The company has a quick ratio of 1.01, a current ratio of 1.57 and a debt-to-equity ratio of 0.19. Cummins has a 12 month low of $143.83 and a 12 month high of $194.18.
Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, February 6th. The company reported $3.03 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.65 by $0.38. The company had revenue of $5.48 billion during the quarter, compared to the consensus estimate of $5.23 billion. Cummins had a net margin of 4.89% and a return on equity of 22.18%. The firm’s quarterly revenue was up 21.6% compared to the same quarter last year. During the same quarter last year, the firm earned $2.25 earnings per share. equities analysts predict that Cummins will post 12.51 earnings per share for the current fiscal year.
Large investors have recently bought and sold shares of the business. State Board of Administration of Florida Retirement System grew its position in Cummins by 1.6% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 229,821 shares of the company’s stock worth $38,617,000 after purchasing an additional 3,700 shares during the period. Kirr Marbach & Co. LLC IN purchased a new position in shares of Cummins during the 3rd quarter worth $255,000. Boston Partners purchased a new position in shares of Cummins during the 3rd quarter worth $416,229,000. FDx Advisors Inc. purchased a new position in shares of Cummins during the 3rd quarter worth $685,000. Finally, IFM Investors Pty Ltd purchased a new position in shares of Cummins during the 3rd quarter worth $742,000. 82.69% of the stock is owned by institutional investors and hedge funds.
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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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