Cummins (CMI) Board of Directors Announces Share Buyback Program
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.
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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