Robert W. Baird Upgrades Cummins (CMI) to Neutral

Cummins (NYSE:CMI) was upgraded by equities researchers at Robert W. Baird from an “underperform” rating to a “neutral” rating in a research report issued to clients and investors on Wednesday, Marketbeat reports.

Other equities research analysts have also recently issued research reports about the company. Zacks Investment Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $148.00 price objective for the company in a research note on Tuesday, July 3rd. Stifel Nicolaus boosted their price objective on Cummins from $160.00 to $172.00 and gave the company a “buy” rating in a research note on Wednesday, August 1st. Piper Jaffray Companies upgraded Cummins from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $143.00 to $188.00 in a research note on Thursday, October 4th. Oppenheimer cut their price target on Cummins from $168.00 to $192.00 and set an “outperform” rating for the company in a research note on Monday, July 23rd. Finally, JPMorgan Chase & Co. upgraded Cummins from an “underweight” rating to a “neutral” rating and upped their price target for the stock 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 given a hold rating and eight have assigned a buy rating to the company. Cummins currently has a consensus rating of “Hold” and a consensus target price of $164.05.

Shares of NYSE CMI opened at $142.19 on Wednesday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.54 and a quick ratio of 1.03. Cummins has a twelve month low of $124.72 and a twelve month high of $194.18. The company has a market capitalization of $22.15 billion, a price-to-earnings ratio of 13.39, a PEG ratio of 0.75 and a beta of 1.12.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, October 30th. The company reported $4.05 earnings per share for the quarter, beating the Zacks’ consensus estimate of $3.76 by $0.29. Cummins had a return on equity of 29.17% and a net margin of 5.57%. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.96 billion. During the same quarter in the previous year, the business earned $2.71 earnings per share. The firm’s revenue for the quarter was up 12.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Cummins will post 15.05 earnings per share for the current year.

Cummins declared that its board has initiated a stock buyback program on Tuesday, October 9th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to buy up to 8.3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

In other Cummins news, CFO Pat Ward sold 4,503 shares of the company’s 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 transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Tracy A. Embree sold 462 shares of the company’s stock in a transaction on Monday, August 6th. The shares were sold at an average price of $141.70, for a total value of $65,465.40. Following the completion of the sale, the vice president now directly owns 4,122 shares in the company, valued at approximately $584,087.40. The disclosure for this sale can be found here. Insiders sold 25,352 shares of company stock valued at $3,811,385 in the last quarter. 0.62% of the stock is currently owned by company insiders.

A number of institutional investors have recently bought and sold shares of the business. Acropolis Investment Management LLC grew its holdings in Cummins by 6.9% in the third quarter. Acropolis Investment Management LLC now owns 5,302 shares of the company’s stock valued at $774,000 after purchasing an additional 340 shares during the last quarter. Security National Bank of SO Dak grew its holdings in Cummins by 7.2% in the second quarter. Security National Bank of SO Dak now owns 5,372 shares of the company’s stock valued at $714,000 after purchasing an additional 360 shares during the last quarter. BRYN MAWR TRUST Co grew its holdings in Cummins by 4.1% in the second quarter. BRYN MAWR TRUST Co now owns 9,410 shares of the company’s stock valued at $1,252,000 after purchasing an additional 369 shares during the last quarter. Essex Financial Services Inc. grew its holdings in Cummins by 10.0% in the second quarter. Essex Financial Services Inc. now owns 4,332 shares of the company’s stock valued at $576,000 after purchasing an additional 395 shares during the last quarter. Finally, Jag Capital Management LLC grew its holdings in Cummins by 3.8% in the second quarter. Jag Capital Management LLC now owns 10,899 shares of the company’s stock valued at $1,450,000 after purchasing an additional 402 shares during the last quarter. 79.42% of the stock is currently owned by institutional investors.

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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