Cummins Inc. (NYSE:CMI) has been assigned an average recommendation of “Hold” from the twenty-four research firms that are currently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, thirteen have assigned a hold recommendation and eight have given a buy recommendation to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $163.39.
CMI has been the topic of several analyst reports. JPMorgan Chase & Co. downgraded shares of Cummins from a “neutral” rating to an “underweight” rating and decreased their target price for the stock from $156.00 to $137.00 in a research note on Friday, August 24th. Zacks Investment Research raised shares of Cummins from a “hold” rating to a “buy” rating and set a $166.00 target price on the stock in a research note on Thursday, November 29th. Bank of America lifted their target price on shares of Cummins from $157.00 to $160.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 9th. UBS Group set a $130.00 target price on shares of Cummins and gave the stock a “sell” rating in a research note on Tuesday, November 6th. Finally, ValuEngine raised shares of Cummins from a “strong sell” rating to a “sell” rating in a research report on Friday, September 21st.
Shares of CMI traded down $5.53 during mid-day trading on Thursday, reaching $140.84. The company’s stock had a trading volume of 102,744 shares, compared to its average volume of 1,374,963. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.54. Cummins has a 52 week low of $124.72 and a 52 week high of $194.18. The firm has a market cap of $23.50 billion, a price-to-earnings ratio of 13.25, a PEG ratio of 0.80 and a beta of 1.17.
Cummins (NYSE:CMI) last issued its earnings results on Tuesday, October 30th. The company reported $4.05 EPS for the quarter, topping the consensus estimate of $3.76 by $0.29. Cummins had a net margin of 5.57% and a return on equity of 29.17%. The company had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.96 billion. During the same period in the previous year, the firm 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, equities research analysts predict that Cummins will post 15.34 earnings per share for the current year.
Cummins announced that its Board of Directors has approved a share buyback plan on Tuesday, October 9th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 8.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which was paid on Monday, December 3rd. Stockholders of record on Thursday, November 15th were issued a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a dividend yield of 3.24%. The ex-dividend date was Wednesday, November 14th. Cummins’s dividend payout ratio (DPR) is presently 42.94%.
In related news, insider Jill E. Cook sold 5,307 shares of the company’s stock in a transaction dated Wednesday, October 3rd. The shares were sold at an average price of $150.00, for a total value of $796,050.00. Following the transaction, the insider now owns 14,985 shares in the company, valued at approximately $2,247,750. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Pat Ward sold 3,481 shares of the company’s stock in a transaction dated Monday, December 3rd. The stock was sold at an average price of $155.00, for a total transaction of $539,555.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 41,541 shares of company stock worth $6,302,659. Company insiders own 0.62% of the company’s stock.
A number of institutional investors have recently made changes to their positions in CMI. Edge Wealth Management LLC bought a new position in Cummins during the 3rd quarter valued at about $102,000. Migdal Insurance & Financial Holdings Ltd. lifted its stake in Cummins by 5,873.3% during 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 during the period. Pflug Koory LLC lifted its stake in Cummins by 604.0% during the 3rd quarter. Pflug Koory LLC now owns 1,056 shares of the company’s stock valued at $154,000 after acquiring an additional 906 shares during the period. Qube Research & Technologies Ltd bought a new position in Cummins during the 2nd quarter valued at about $155,000. Finally, Centaurus Financial Inc. lifted its stake in Cummins by 73.2% during 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 during the period. Institutional investors own 80.72% 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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