Jefferies Financial Group Analysts Raise Earnings Estimates for Cummins Inc. (CMI)

Cummins Inc. (NYSE:CMI) – Analysts at Jefferies Financial Group lifted their FY2019 earnings estimates for shares of Cummins in a research report issued to clients and investors on Tuesday, October 30th. Jefferies Financial Group analyst S. Volkmann now anticipates that the company will post earnings of $17.00 per share for the year, up from their previous estimate of $16.15. Jefferies Financial Group also issued estimates for Cummins’ FY2020 earnings at $17.85 EPS.

Other equities analysts have also recently issued research reports about the company. Stifel Nicolaus raised their price objective on Cummins from $160.00 to $172.00 and gave the company a “buy” rating in a report on Wednesday, August 1st. Piper Jaffray Companies upgraded Cummins from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $143.00 to $188.00 in a report on Thursday, October 4th. Zacks Investment Research cut Cummins from a “buy” rating to a “hold” rating in a report on Monday, August 27th. Oppenheimer decreased their price objective on 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 Cummins from an “underweight” rating to a “neutral” rating and raised their price objective for the company from $137.00 to $147.00 in a report on Wednesday. Two equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and eight have issued a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $163.60.

Shares of NYSE CMI opened at $141.83 on Thursday. The stock has a market capitalization of $21.95 billion, a PE ratio of 13.35, a P/E/G ratio of 0.76 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 1.03. Cummins has a fifty-two week low of $124.72 and a fifty-two week high of $194.18.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Tuesday, October 30th. The company reported $4.05 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $3.76 by $0.29. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.96 billion. Cummins had a return on equity of 29.17% and a net margin of 5.57%. Cummins’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter last year, the company earned $2.71 EPS.

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be issued a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 3.22%. The ex-dividend date is Wednesday, November 14th. Cummins’s payout ratio is currently 42.94%.

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

In related news, VP Mark Andrew Smith sold 501 shares of Cummins stock in a transaction dated Tuesday, October 9th. The stock was sold at an average price of $153.27, for a total transaction of $76,788.27. Following the completion of the transaction, the vice president now owns 4,463 shares in the company, valued at $684,044.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Marya M. Rose sold 14,579 shares of Cummins stock in a transaction dated Monday, October 8th. The stock was sold at an average price of $151.07, for a total value of $2,202,449.53. Following the transaction, the chief accounting officer now owns 24,424 shares of the company’s stock, valued at approximately $3,689,733.68. The disclosure for this sale can be found here. Insiders have 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 corporate insiders.

A number of institutional investors have recently bought and sold shares of the stock. Edge Wealth Management LLC acquired a new stake in Cummins during the third quarter worth approximately $102,000. Migdal Insurance & Financial Holdings Ltd. lifted its position in Cummins by 5,873.3% during the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 896 shares of the company’s stock worth $119,000 after acquiring an additional 881 shares during the last quarter. MHI Funds LLC acquired a new stake in Cummins during the second quarter worth approximately $147,000. Qube Research & Technologies Ltd acquired a new stake in Cummins during the second quarter worth approximately $155,000. Finally, Centaurus Financial Inc. lifted its position in Cummins by 73.2% during the second quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock worth $164,000 after acquiring an additional 520 shares during the last quarter. Institutional investors and hedge funds own 79.42% of the company’s stock.

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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Earnings History and Estimates for Cummins (NYSE:CMI)

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