Cummins (NYSE:CMI) Lowered to Buy Rating by Wall Street Zen

Wall Street Zen downgraded shares of Cummins (NYSE:CMI) from a strong-buy rating to a buy rating in a report issued on Sunday morning.

Other analysts also recently issued reports about the company. Raymond James Financial lifted their price objective on Cummins from $585.00 to $675.00 and gave the company an “outperform” rating in a report on Monday, February 9th. Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Barclays raised their target price on shares of Cummins from $546.00 to $610.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Weiss Ratings restated a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Finally, Morgan Stanley reiterated an “overweight” rating and set a $675.00 price objective on shares of Cummins in a research note on Friday, February 6th. Eleven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $588.93.

Cummins Stock Down 3.0%

Shares of NYSE:CMI opened at $539.59 on Friday. The business’s 50 day moving average is $570.78 and its 200 day moving average is $491.34. The stock has a market cap of $74.55 billion, a P/E ratio of 26.30, a price-to-earnings-growth ratio of 1.71 and a beta of 1.12. Cummins has a 52-week low of $260.02 and a 52-week high of $617.98. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last issued its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, beating analysts’ consensus estimates of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business had revenue of $8.54 billion during the quarter, compared to analyst estimates of $8.09 billion. During the same period in the previous year, the company posted $5.16 EPS. Cummins’s revenue was up 1.1% on a year-over-year basis. Sell-side analysts predict that Cummins will post 22.54 EPS for the current year.

Cummins Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Friday, February 20th were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a yield of 1.5%. The ex-dividend date was Friday, February 20th. Cummins’s payout ratio is 38.99%.

Insiders Place Their Bets

In other news, VP Donald G. Jackson sold 1,600 shares of the firm’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the sale, the vice president directly owned 7,214 shares in the company, valued at approximately $4,329,337.82. This trade represents a 18.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the completion of the transaction, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. The trade was a 22.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 31,195 shares of company stock valued at $18,397,489 in the last three months. 0.41% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cummins

Institutional investors have recently bought and sold shares of the company. Union Savings Bank purchased a new stake in shares of Cummins during the 4th quarter valued at $314,000. Mengis Capital Management Inc. grew its stake in Cummins by 0.3% during the 4th quarter. Mengis Capital Management Inc. now owns 6,463 shares of the company’s stock worth $3,299,000 after buying an additional 20 shares during the last quarter. Bayban purchased a new position in Cummins during the 4th quarter worth $55,000. Pure Financial Advisors LLC increased its position in Cummins by 17.9% during the 4th quarter. Pure Financial Advisors LLC now owns 994 shares of the company’s stock valued at $508,000 after buying an additional 151 shares in the last quarter. Finally, OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in Cummins in the fourth quarter valued at about $1,531,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.