Cummins (NYSE:CMI) Downgraded to “Hold” Rating by Zacks Research

Zacks Research lowered shares of Cummins (NYSE:CMI) from a strong-buy rating to a hold rating in a research note issued to investors on Thursday morning,Zacks.com reports.

Several other research firms also recently weighed in on CMI. Wells Fargo & Company upgraded Cummins to an “overweight” rating in a report on Monday, August 11th. Citigroup increased their target price on Cummins from $500.00 to $530.00 and gave the company a “buy” rating in a research report on Friday. Robert W. Baird lifted their price target on Cummins from $315.00 to $355.00 and gave the company a “neutral” rating in a report on Friday, July 11th. Evercore ISI restated an “outperform” rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Wolfe Research upgraded Cummins from a “hold” rating to an “outperform” rating in a research note on Monday, August 11th. Ten analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Cummins currently has an average rating of “Moderate Buy” and a consensus target price of $428.93.

Cummins Trading Up 2.4%

Shares of Cummins stock traded up $11.30 on Thursday, hitting $474.10. 1,372,869 shares of the company traded hands, compared to its average volume of 880,308. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The company has a market cap of $65.32 billion, a PE ratio of 22.29, a PEG ratio of 2.05 and a beta of 1.07. The stock’s 50 day moving average price is $420.80 and its 200-day moving average price is $368.54. Cummins has a 52 week low of $260.02 and a 52 week high of $482.53.

Cummins (NYSE:CMI) last released its quarterly earnings data on Thursday, November 6th. The company reported $5.59 EPS for the quarter, topping the consensus estimate of $4.83 by $0.76. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The company had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. During the same period last year, the business posted $5.86 EPS. Cummins’s quarterly revenue was down 1.6% on a year-over-year basis. Equities research analysts predict that Cummins will post 22.54 EPS for the current year.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, November 21st will be paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Friday, November 21st. Cummins’s payout ratio is presently 37.61%.

Insider Activity at Cummins

In related news, VP Robert Enright sold 1,860 shares of the company’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $402.26, for a total value of $748,203.60. Following the transaction, the vice president directly owned 955 shares of the company’s stock, valued at $384,158.30. This represents a 66.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Mark Andrew Smith sold 200 shares of the business’s stock in a transaction dated Thursday, October 30th. The shares were sold at an average price of $449.10, for a total value of $89,820.00. Following the sale, the chief financial officer owned 31,582 shares in the company, valued at approximately $14,183,476.20. The trade was a 0.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 37,949 shares of company stock valued at $15,674,705 over the last three months. 0.41% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CMI. Stock Yards Bank & Trust Co. increased its holdings in shares of Cummins by 0.4% during the 3rd quarter. Stock Yards Bank & Trust Co. now owns 5,917 shares of the company’s stock valued at $2,499,000 after purchasing an additional 24 shares in the last quarter. Whittier Trust Co. grew its position in Cummins by 0.9% during the third quarter. Whittier Trust Co. now owns 2,667 shares of the company’s stock valued at $1,154,000 after buying an additional 24 shares during the period. Howard Capital Management Inc. increased its holdings in Cummins by 2.9% in the third quarter. Howard Capital Management Inc. now owns 863 shares of the company’s stock valued at $365,000 after buying an additional 24 shares in the last quarter. BNP Paribas raised its position in shares of Cummins by 1.8% in the second quarter. BNP Paribas now owns 1,422 shares of the company’s stock worth $466,000 after acquiring an additional 25 shares during the period. Finally, Bridges Investment Management Inc. boosted its stake in shares of Cummins by 3.2% during the 3rd quarter. Bridges Investment Management Inc. now owns 845 shares of the company’s stock worth $357,000 after acquiring an additional 26 shares in the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.