Cummins Inc. (NYSE:CMI) – William Blair upped their Q4 2018 earnings per share (EPS) estimates for shares of Cummins in a research note issued on Tuesday, October 30th. William Blair analyst L. De. Maria now anticipates that the company will earn $3.73 per share for the quarter, up from their prior estimate of $3.61. William Blair also issued estimates for Cummins’ FY2019 earnings at $15.00 EPS.
Other analysts also recently issued reports about the stock. Stifel Nicolaus increased their price target on shares of Cummins from $160.00 to $172.00 and gave the company a “buy” rating in a report on Wednesday, August 1st. Piper Jaffray Companies raised shares of Cummins from a “neutral” rating to an “overweight” rating and increased their price target for the company from $143.00 to $188.00 in a report on Thursday, October 4th. Zacks Investment Research downgraded shares of Cummins from a “buy” rating to a “hold” rating in a report on Monday, August 27th. Oppenheimer reduced their price target on shares of Cummins from $168.00 to $192.00 and set an “outperform” rating for the company in a report on Monday, July 23rd. Finally, JPMorgan Chase & Co. upgraded shares of Cummins from an “underweight” rating to a “neutral” rating and increased their price objective for the company from $137.00 to $147.00 in a research note on Wednesday. Two investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and eight have issued a buy rating to the stock. Cummins presently has an average rating of “Hold” and a consensus price target of $164.05.
Shares of Cummins stock opened at $142.19 on Thursday. The company has a quick ratio of 1.03, a current ratio of 1.54 and a debt-to-equity ratio of 0.19. Cummins has a fifty-two week low of $124.72 and a fifty-two week high of $194.18. The firm has a market capitalization of $22.15 billion, a price-to-earnings ratio of 13.39, a P/E/G ratio of 0.75 and a beta of 1.12.
Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share for the quarter, beating analysts’ consensus estimates of $3.76 by $0.29. Cummins had a net margin of 5.57% and a return on equity of 29.17%. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.96 billion. During the same period in the prior year, the firm earned $2.71 EPS. The business’s revenue was up 12.5% on a year-over-year basis.
Institutional investors have recently made changes to their positions in the stock. Edge Wealth Management LLC acquired a new stake in shares of Cummins during the 3rd quarter worth about $102,000. Migdal Insurance & Financial Holdings Ltd. increased its position in Cummins by 5,873.3% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 896 shares of the company’s stock valued at $119,000 after acquiring an additional 881 shares in the last quarter. MHI Funds LLC acquired a new stake in Cummins in the 2nd quarter valued at about $147,000. Qube Research & Technologies Ltd acquired a new stake in Cummins in the 2nd quarter valued at about $155,000. Finally, Centaurus Financial Inc. increased its position in Cummins by 73.2% in the 2nd quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock valued at $164,000 after acquiring an additional 520 shares in the last quarter. Institutional investors and hedge funds own 79.42% of the company’s stock.
In related news, VP Tracy A. Embree sold 462 shares of the stock in a transaction dated Monday, August 6th. The shares were sold at an average price of $141.70, for a total transaction of $65,465.40. Following the completion of the sale, the vice president now owns 4,122 shares in the company, valued at approximately $584,087.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Pat Ward sold 4,503 shares of the stock in a transaction dated Wednesday, October 3rd. The stock was sold at an average price of $148.93, for a total transaction of $670,631.79. The disclosure for this sale can be found here. Insiders have sold a total of 25,352 shares of company stock valued at $3,811,385 in the last quarter. 0.62% of the stock is currently owned by corporate insiders.
The company also recently announced a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be given a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a dividend yield of 3.21%. The ex-dividend date is Wednesday, November 14th. Cummins’s dividend payout ratio (DPR) is currently 42.94%.
Cummins announced that its board has authorized a stock repurchase plan on Tuesday, October 9th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to reacquire up to 8.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.
Cummins Company Profile
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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