Cummins Inc. (CMI) Stock Rating Lowered by Zacks Investment Research
Cummins Inc. (NYSE:CMI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
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.”
Several other equities research analysts also recently issued reports on the company. ValuEngine upgraded Cummins from a “hold” rating to a “buy” rating in a research report on Friday, June 2nd. Stifel Nicolaus increased their target price on Cummins from $155.00 to $160.00 and gave the stock a “hold” rating in a research report on Thursday, June 15th. Buckingham Research initiated coverage on Cummins in a research report on Tuesday, September 5th. They set a “buy” rating and a $180.00 target price on the stock. Jefferies Group LLC restated a “hold” rating and set a $165.00 target price on shares of Cummins in a research report on Thursday, September 7th. Finally, Piper Jaffray Companies restated a “hold” rating and set a $159.00 target price on shares of Cummins in a research report on Tuesday, September 12th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating to the company. Cummins has an average rating of “Hold” and an average target price of $161.21.
Cummins (NYSE:CMI) opened at 168.35 on Tuesday. The firm’s 50-day moving average price is $158.40 and its 200-day moving average price is $157.01. The company has a market cap of $28.11 billion, a price-to-earnings ratio of 19.03 and a beta of 1.10. Cummins has a 1-year low of $119.41 and a 1-year high of $170.68.
Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, August 1st. The company reported $2.53 EPS for the quarter, missing the consensus estimate of $2.58 by ($0.05). Cummins had a net margin of 8.10% and a return on equity of 20.67%. The firm had revenue of $5.08 billion during the quarter, compared to analysts’ expectations of $4.80 billion. During the same quarter in the previous year, the company posted $2.40 EPS. Cummins’s revenue for the quarter was up 12.1% on a year-over-year basis. Equities research analysts forecast that Cummins will post $7.98 EPS for the current fiscal year.
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In related news, insider Tony Satterthwaite sold 4,000 shares of the stock in a transaction on Tuesday, July 25th. The stock was sold at an average price of $169.00, for a total value of $676,000.00. Following the transaction, the insider now owns 41,902 shares of the company’s stock, valued at $7,081,438. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Pat Ward sold 5,000 shares of the stock in a transaction on Tuesday, July 25th. The shares were sold at an average price of $169.00, for a total value of $845,000.00. Following the completion of the transaction, the chief financial officer now directly owns 245 shares in the company, valued at approximately $41,405. The disclosure for this sale can be found here. In the last three months, insiders sold 44,183 shares of company stock worth $7,320,858. 0.62% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in CMI. BlackRock Inc. increased its stake in Cummins by 2,874.8% in the first quarter. BlackRock Inc. now owns 10,211,140 shares of the company’s stock valued at $1,543,924,000 after acquiring an additional 9,867,890 shares during the last quarter. AJO LP increased its stake in Cummins by 11,096.3% in 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. Franklin Resources Inc. increased its stake in Cummins by 434.1% in the second quarter. Franklin Resources Inc. now owns 1,380,233 shares of the company’s stock valued at $223,902,000 after acquiring an additional 1,121,833 shares during the last quarter. Ameriprise Financial Inc. increased its stake in Cummins by 82.5% in the second quarter. Ameriprise Financial Inc. now owns 1,969,135 shares of the company’s stock valued at $319,426,000 after acquiring an additional 890,404 shares during the last quarter. Finally, Janus Henderson Group PLC increased its stake in Cummins by 784.9% in the second quarter. Janus Henderson Group PLC now owns 784,776 shares of the company’s stock valued at $127,307,000 after acquiring an additional 696,090 shares during the last quarter. 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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