Cummins (NYSE:CMI) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a research report sent to investors on Monday,Wall Street Zen reports.

A number of other brokerages also recently commented on CMI. Evercore reduced their target price on shares of Cummins from $845.00 to $782.00 and set an “outperform” rating for the company in a report on Tuesday, August 11th. Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Wells Fargo & Company cut their price objective on shares of Cummins from $760.00 to $608.00 and set an “overweight” rating on the stock in a research report on Monday, October 26th. Sanford C. Bernstein reiterated a “market perform” rating and set a $700.00 price objective on shares of Cummins in a research note on Wednesday, August 5th. Finally, Bank of America decreased their target price on shares of Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $694.24.

Cummins Trading Down 5.7%

Shares of NYSE:CMI opened at $472.37 on Monday. The company has a market capitalization of $65.03 billion, a PE ratio of 24.14, a P/E/G ratio of 1.32 and a beta of 1.26. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. Cummins has a 12-month low of $427.50 and a 12-month high of $737.76. The business’s fifty day simple moving average is $531.57 and its 200-day simple moving average is $600.85.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. During the same quarter last year, the company earned $6.43 earnings per share. The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts predict that Cummins will post 29.98 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, November 20th will be issued a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.9%. Cummins’s payout ratio is 44.97%.

Insider Activity

In related news, VP Earl Newsome sold 698 shares of the firm’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares in the company, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.30% of the stock is currently owned by insiders.

Institutional Trading of Cummins

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CMI. Cornerstone Wealth Management LLC grew its position in shares of Cummins by 1.4% during the 3rd quarter. Cornerstone Wealth Management LLC now owns 4,326 shares of the company’s stock valued at $2,234,000 after acquiring an additional 58 shares during the period. Csenge Advisory Group increased its stake in shares of Cummins by 1.1% in the 3rd quarter. Csenge Advisory Group now owns 3,765 shares of the company’s stock valued at $1,945,000 after purchasing an additional 40 shares in the last quarter. Global Wealth Management Investment Advisory Inc. raised its holdings in Cummins by 1,473.8% in the 3rd quarter. Global Wealth Management Investment Advisory Inc. now owns 9,144 shares of the company’s stock worth $4,723,000 after purchasing an additional 8,563 shares during the period. 71 West Capital Partners raised its holdings in Cummins by 5.2% in the 3rd quarter. 71 West Capital Partners now owns 1,444 shares of the company’s stock worth $746,000 after purchasing an additional 71 shares during the period. Finally, Kohmann Bosshard Financial Services LLC raised its holdings in Cummins by 7.3% in the 3rd quarter. Kohmann Bosshard Financial Services LLC now owns 1,010 shares of the company’s stock worth $521,000 after purchasing an additional 69 shares during the period. Institutional investors and hedge funds own 83.46% of the company’s stock.

Cummins Company Profile

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins’ product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.