Cummins (NYSE:CMI) declared that its board has authorized a stock repurchase program, which permits the company to buyback $2.00 billion in outstanding shares on Tuesday, October 9th. This buyback authorization permits the company to purchase up to 8.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

CMI opened at $145.24 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.03 and a current ratio of 1.61. The stock has a market capitalization of $24.07 billion, a price-to-earnings ratio of 13.68, a P/E/G ratio of 0.84 and a beta of 1.12. Cummins has a twelve month low of $129.90 and a twelve month high of $194.18.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, July 31st. The company reported $3.32 earnings per share for the quarter, missing the Zacks’ consensus estimate of $3.63 by ($0.31). The company had revenue of $6.13 billion during the quarter, compared to analysts’ expectations of $5.81 billion. Cummins had a net margin of 4.67% and a return on equity of 26.30%. The firm’s revenue was up 20.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.53 earnings per share. As a group, research analysts anticipate that Cummins will post 14.94 earnings per share for the current fiscal year.

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 paid a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a dividend yield of 3.14%. The ex-dividend date of this dividend is Wednesday, November 14th. Cummins’s payout ratio is currently 42.94%.

Several research firms recently weighed in on CMI. Zacks Investment Research cut shares of Cummins from a “buy” rating to a “hold” rating in a report on Monday, August 27th. Oppenheimer cut their price target on shares of Cummins from $168.00 to $192.00 and set an “outperform” rating on the stock in a report on Monday, July 23rd. Mizuho began coverage on shares of Cummins in a report on Friday, June 29th. They set a “neutral” rating and a $150.00 price target on the stock. Stifel Nicolaus set a $156.00 price target on shares of Cummins and gave the stock a “buy” rating in a report on Monday, September 10th. Finally, Citigroup dropped their target price on shares of Cummins from $160.00 to $150.00 and set a “neutral” rating on the stock in a research note on Monday, June 25th. Four investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have given a buy rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $167.48.

In related news, VP Mark Andrew Smith sold 501 shares of the company’s stock in a transaction that occurred on Tuesday, October 9th. The shares were sold at an average price of $153.27, for a total transaction of $76,788.27. Following the sale, the vice president now directly owns 4,463 shares in the company, valued at approximately $684,044.01. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alexis M. Herman sold 735 shares of the company’s stock in a transaction that occurred on Friday, August 3rd. The shares were sold at an average price of $139.90, for a total transaction of $102,826.50. The disclosure for this sale can be found here. Insiders have sold a total of 26,087 shares of company stock worth $3,914,211 over the last 90 days. 0.67% of the stock is currently owned by corporate insiders.

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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