Cummins Inc. (CMI) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Cummins Inc. (NYSE:CMI) from a hold rating to a buy rating in a report issued on Monday. They currently have $188.00 price target on the stock.
According to Zacks, “Zacks Consensus Estimate for Cummins’ quarterly earnings has remained unchanged of late. The company expects to witness a growing trend in its truck and construction products’ demand, along with growth in global mining customers, which will have a positive impact on its sales figure. The company is also developing a Class 7 heavy-duty electric truck having a 140 kWh battery pack, to cater bus and commercial truck operators. Moreover, it has also provided an improved outlook for fiscal 2017. The company is also poised to benefit from its business expansions in China and acquisitions and partnerships in North America. Also, its shares have outperformed against the industry, year to date. However, challenging market condition, currency headwinds and high warranty costs might dent the financials of Cummins.”
Other equities research analysts also recently issued research reports about the company. Stifel Nicolaus increased their target price on Cummins from $160.00 to $168.00 and gave the stock a hold rating in a research report on Wednesday, August 2nd. Royal Bank Of Canada restated a hold rating and issued a $166.00 target price on shares of Cummins in a research note on Wednesday, July 12th. Deutsche Bank AG reduced their target price on Cummins from $155.00 to $147.00 and set a sell rating for the company in a report on Wednesday, August 2nd. Piper Jaffray Companies reiterated a hold rating and set a $161.00 price target on shares of Cummins in a research report on Wednesday, July 12th. Finally, Seaport Global Securities reissued a neutral rating on shares of Cummins in a report on Tuesday, July 4th. One analyst has rated the stock with a sell rating, nine have given a hold rating and eight have issued a buy rating to the stock. Cummins currently has a consensus rating of Hold and an average price target of $162.02.
Shares of Cummins (CMI) opened at 169.33 on Monday. The company has a market capitalization of $28.28 billion, a PE ratio of 19.14 and a beta of 1.13. The company has a 50 day moving average price of $160.90 and a 200 day moving average price of $158.05. Cummins has a 52 week low of $121.22 and a 52 week high of $170.68.
Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, August 1st. The company reported $2.53 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $2.58 by ($0.05). The business had revenue of $5.08 billion for the quarter, compared to analysts’ expectations of $4.80 billion. Cummins had a net margin of 8.10% and a return on equity of 20.67%. Cummins’s revenue for the quarter was up 12.1% compared to the same quarter last year. During the same period last year, the company earned $2.40 earnings per share. On average, equities research analysts expect that Cummins will post $7.98 earnings per share for the current year.
In related news, Director Franklin R. Changdiaz sold 1,633 shares of Cummins stock in a transaction on Wednesday, August 9th. The shares were sold at an average price of $159.27, for a total value of $260,087.91. Following the transaction, the director now directly owns 5,814 shares of the company’s stock, valued at $925,995.78. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Pat Ward sold 5,000 shares of the company’s stock in a transaction on Tuesday, July 25th. The shares were sold at an average price of $169.00, for a total transaction of $845,000.00. Following the sale, the chief financial officer now owns 245 shares of the company’s stock, valued at $41,405. The disclosure for this sale can be found here. Insiders sold 44,183 shares of company stock valued at $7,320,858 in the last quarter. Corporate insiders own 0.62% of the company’s stock.
A number of institutional investors have recently made changes to their positions in CMI. AJO LP raised its stake in shares of Cummins by 11,096.3% during the second quarter. AJO LP now owns 1,149,856 shares of the company’s stock valued at $186,530,000 after acquiring an additional 1,139,586 shares during the last quarter. AGF Investments America Inc. lifted its holdings in Cummins by 41.5% in the 2nd quarter. AGF Investments America Inc. now owns 38,653 shares of the company’s stock worth $6,270,000 after buying an additional 11,338 shares during the period. Bank of America Corp DE grew its position in shares of Cummins by 8.6% in the 1st quarter. Bank of America Corp DE now owns 780,787 shares of the company’s stock worth $118,055,000 after buying an additional 62,046 shares during the last quarter. Alambic Investment Management L.P. grew its position in shares of Cummins by 0.7% in the 1st quarter. Alambic Investment Management L.P. now owns 2,416 shares of the company’s stock worth $365,000 after buying an additional 16 shares during the last quarter. Finally, Delta Lloyd Asset Management N.V. bought a new stake in shares of Cummins in the 2nd quarter worth approximately $3,466,000. 80.38% of the stock is currently owned by institutional investors and hedge funds.
Cummins Company Profile
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company’s segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.
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