Cummins (NYSE:CMI) Lifted to Overweight at Wells Fargo & Co

Cummins (NYSE:CMI) was upgraded by research analysts at Wells Fargo & Co from an “equal weight” rating to an “overweight” rating in a research note issued to investors on Tuesday, Marketbeat.com reports. The brokerage presently has a $205.00 target price on the stock, up from their previous target price of $180.00. Wells Fargo & Co‘s price objective would suggest a potential upside of 18.18% from the stock’s previous close.

A number of other brokerages have also weighed in on CMI. Cowen started coverage on Cummins in a research report on Thursday, January 9th. They set a “market perform” rating and a $173.00 price objective for the company. Raymond James started coverage on Cummins in a research report on Wednesday, November 27th. They set a “market perform” rating for the company. Royal Bank of Canada restated a “hold” rating and set a $185.00 price objective (up previously from $167.00) on shares of Cummins in a research report on Monday, November 25th. Barclays reiterated a “hold” rating and issued a $159.00 price target on shares of Cummins in a research report on Wednesday, October 16th. Finally, ValuEngine lowered Cummins from a “hold” rating to a “sell” rating in a research report on Saturday, January 4th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and eight have issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $178.41.

Shares of Cummins stock opened at $173.47 on Tuesday. The firm has a market cap of $26.41 billion, a price-to-earnings ratio of 13.11, a PEG ratio of 2.04 and a beta of 1.14. The business has a 50-day moving average price of $179.22 and a 200-day moving average price of $168.66. The company has a quick ratio of 0.95, a current ratio of 1.52 and a debt-to-equity ratio of 0.18. Cummins has a twelve month low of $138.73 and a twelve month high of $186.73.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, October 29th. The company reported $3.83 earnings per share for the quarter, missing the Zacks’ consensus estimate of $3.84 by ($0.01). The firm had revenue of $5.77 billion for the quarter, compared to analysts’ expectations of $5.87 billion. Cummins had a net margin of 10.53% and a return on equity of 28.52%. The company’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.05 EPS. On average, equities analysts expect that Cummins will post 14.77 EPS for the current fiscal year.

Cummins announced that its Board of Directors has initiated a stock buyback program on Tuesday, December 10th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to reacquire up to 7.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in Cummins by 2.3% in the second quarter. Vanguard Group Inc. now owns 12,170,719 shares of the company’s stock worth $2,085,331,000 after purchasing an additional 276,792 shares during the last quarter. BlackRock Inc. raised its stake in shares of Cummins by 5.8% during the second quarter. BlackRock Inc. now owns 11,488,896 shares of the company’s stock valued at $1,968,509,000 after acquiring an additional 629,235 shares in the last quarter. State Street Corp raised its stake in shares of Cummins by 0.7% during the third quarter. State Street Corp now owns 10,542,424 shares of the company’s stock valued at $1,714,936,000 after acquiring an additional 76,432 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Cummins by 173.8% during the second quarter. AQR Capital Management LLC now owns 2,366,771 shares of the company’s stock valued at $400,387,000 after acquiring an additional 1,502,462 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Cummins by 27.2% during the second quarter. Invesco Ltd. now owns 2,112,358 shares of the company’s stock valued at $361,932,000 after acquiring an additional 452,071 shares in the last quarter. 82.98% of the stock is 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 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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