Cummins Inc. (CMI) Upgraded by Zacks Investment Research to “Buy”
Cummins Inc. (NYSE:CMI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The firm currently has a $177.00 price target on the stock. Zacks Investment Research‘s price target suggests a potential upside of 10.75% from the company’s current price.
According to Zacks, “Cummins earnings missed the Zacks Consensus Estimate, whereas revenues beat the same in second-quarter 2017. Compared with the year-ago figures, both earnings per share and the revenues were higher. 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. Cummins 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. Its shares have also outperformed the industry it belongs to, in the last six months.”
CMI has been the subject of a number of other research reports. Deutsche Bank AG reissued a “sell” rating and issued a $154.00 price target (up previously from $142.00) on shares of Cummins in a report on Wednesday, May 3rd. Stifel Nicolaus reissued a “hold” rating and issued a $150.00 price target on shares of Cummins in a report on Wednesday, April 12th. Wells Fargo & Company raised shares of Cummins from a “market perform” rating to an “outperform” rating in a report on Monday, April 17th. ValuEngine raised shares of Cummins from a “hold” rating to a “buy” rating in a report on Friday, June 2nd. Finally, Barclays PLC raised their price target on shares of Cummins from $137.00 to $144.00 and gave the company an “equal weight” rating in a report on Wednesday, April 19th. One analyst has rated the stock with a sell rating, eleven have given a hold rating and seven have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $154.33.
Cummins (CMI) traded down 0.13% during trading on Friday, hitting $159.82. The stock had a trading volume of 1,294,751 shares. The company has a market cap of $26.69 billion, a PE ratio of 18.06 and a beta of 1.09. The stock has a 50-day moving average price of $163.10 and a 200-day moving average price of $154.60. Cummins has a 52 week low of $116.03 and a 52 week high of $170.68.
Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 1st. The company reported $2.53 earnings per share for the quarter, missing analysts’ consensus estimates of $2.58 by $0.05. The company had revenue of $5.08 billion during the quarter, compared to analyst estimates of $4.80 billion. Cummins had a net margin of 8.10% and a return on equity of 20.67%. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same period in the prior year, the business earned $2.40 EPS. Equities analysts predict that Cummins will post $7.98 EPS for the current year.
In other news, Director Alexis M. Herman sold 1,300 shares of Cummins stock in a transaction on Wednesday, May 10th. The shares were sold at an average price of $159.16, for a total transaction of $206,908.00. Following the transaction, the director now directly owns 29,656 shares of the company’s stock, valued at $4,720,048.96. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, COO Richard Joseph Freeland sold 22,550 shares of Cummins stock in a transaction on Thursday, July 6th. The stock was sold at an average price of $165.00, for a total transaction of $3,720,750.00. Following the transaction, the chief operating officer now directly owns 14,131 shares in the company, valued at $2,331,615. The disclosure for this sale can be found here. Over the last three months, insiders have sold 60,636 shares of company stock worth $10,000,575. Insiders own 0.62% of the company’s stock.
Several institutional investors have recently made changes to their positions in CMI. State Street Corp boosted its position in shares of Cummins by 0.5% in the first quarter. State Street Corp now owns 12,238,897 shares of the company’s stock worth $1,850,515,000 after buying an additional 61,286 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Cummins by 4.7% in the first quarter. Vanguard Group Inc. now owns 11,315,964 shares of the company’s stock worth $1,710,973,000 after buying an additional 510,416 shares in the last quarter. BlackRock Inc. boosted its position in shares of Cummins by 2,874.8% in the first quarter. BlackRock Inc. now owns 10,211,140 shares of the company’s stock worth $1,543,924,000 after buying an additional 9,867,890 shares in the last quarter. American International Group Inc. boosted its position in shares of Cummins by 1.7% in the first quarter. American International Group Inc. now owns 3,471,072 shares of the company’s stock worth $524,826,000 after buying an additional 59,401 shares in the last quarter. Finally, American Century Companies Inc. boosted its position in shares of Cummins by 2.9% in the second quarter. American Century Companies Inc. now owns 2,710,712 shares of the company’s stock worth $439,732,000 after buying an additional 77,116 shares in the last quarter. 80.34% of the stock is currently owned by institutional investors.
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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