Cummins (NYSE:CMI) Cut to Hold at Zacks Research

Cummins (NYSE:CMI) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Thursday,Zacks.com reports.

Several other equities research analysts have also commented on the stock. Barclays upped their price target on shares of Cummins from $387.00 to $430.00 and gave the company an “equal weight” rating in a report on Monday, October 20th. Melius upgraded Cummins from a “hold” rating to a “buy” rating and set a $500.00 target price on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company upgraded Cummins to an “overweight” rating in a research report on Monday, August 11th. Citigroup boosted their price target on Cummins from $500.00 to $530.00 and gave the company a “buy” rating in a report on Friday. Finally, Evercore ISI reaffirmed an “outperform” rating on shares of Cummins in a research note on Tuesday, August 19th. Ten equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $428.93.

Cummins Trading Up 2.4%

Cummins stock opened at $474.10 on Thursday. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins has a 52 week low of $260.02 and a 52 week high of $482.53. The company has a market capitalization of $65.32 billion, a price-to-earnings ratio of 22.29, a price-to-earnings-growth ratio of 2.05 and a beta of 1.07. The stock has a 50-day moving average price of $420.80 and a 200 day moving average price of $368.54.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Thursday, November 6th. The company reported $5.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company had revenue of $8.32 billion during the quarter, compared to analyst estimates of $7.97 billion. During the same period last year, the firm posted $5.86 EPS. Cummins’s revenue for the quarter was down 1.6% compared to the same quarter last year. Sell-side analysts anticipate that Cummins will post 22.54 EPS for the current year.

Insider Activity at Cummins

In other Cummins news, Director Karen H. Quintos sold 1,307 shares of the stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $405.33, for a total transaction of $529,766.31. Following the transaction, the director directly owned 5,227 shares of the company’s stock, valued at $2,118,659.91. This trade represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Amy Rochelle Davis sold 5,002 shares of the company’s stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the transaction, the vice president owned 20,738 shares of the company’s stock, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 37,949 shares of company stock valued at $15,674,705. Insiders own 0.41% of the company’s stock.

Institutional Trading of Cummins

Institutional investors have recently made changes to their positions in the company. Motley Fool Asset Management LLC boosted its position in shares of Cummins by 9.7% during the 2nd quarter. Motley Fool Asset Management LLC now owns 7,018 shares of the company’s stock valued at $2,298,000 after acquiring an additional 623 shares during the last quarter. Applied Finance Capital Management LLC boosted its holdings in Cummins by 14.4% in the 2nd quarter. Applied Finance Capital Management LLC now owns 60,797 shares of the company’s stock valued at $19,910,000 after purchasing an additional 7,656 shares during the last quarter. Fox Run Management L.L.C. purchased a new stake in shares of Cummins in the 1st quarter valued at approximately $2,749,000. Invesco Ltd. increased its holdings in shares of Cummins by 11.6% during the 1st quarter. Invesco Ltd. now owns 1,215,956 shares of the company’s stock worth $381,129,000 after buying an additional 126,362 shares during the last quarter. Finally, Jump Financial LLC raised its position in shares of Cummins by 101.9% during the 1st quarter. Jump Financial LLC now owns 5,843 shares of the company’s stock valued at $1,831,000 after buying an additional 2,949 shares during the period. 83.46% 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, 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.